Alden Co.'s monthly sales and cost data for its operation activities of the past year follow. managment wants to use these data to predict future fixed and variable cost.
month sales total cost month sales total cost
1. $320.000 $160.000 7. $340.000 $220.000
2. 160.000 100.000 8. 280.000 160.000
3. 280.000 220.000 9. 80.000 64.000
4. 200.000 100.000 10. 160.000 140.000
5. 300.000 230.000 11. 100.000 100.000
6. 200.000 120.000 12. 110.000 80.000
Required:
1. Estimate both the variable costs per sales dollar and the total monthly fixed costs using the high low method.
2. Use the estimated line of cost behavioral and results from part 1to predict future cost total cost when sales volume is a} $200.000 and b} $300.000.