Winston uses the high-low method. It had an average cost per unit of $5.30 at its...

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business accounting

Answer 1

Answer #1

Total cost at 10,000 units=(10,000*5.3)=$53000

Total cost at 20,000 units=(20,000*3.7)=$74,000

Variable cost per unit=[Total cost at highest level-Total cost at lowest level]/(Highest level-Lowest level)

=(74000-53000)/(20,000-10,000)=$2.1 per unit

Total fixed cost=74000-(2.1*20,000)=$32,000

Hence total cost at 9000 units=Total variable cost+Total fixed cost

=32000+(2.1*9000)

=$50900

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Answer 2

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