Exercise 2-16A (Algo) Estimating fixed and variable costs using the high-low method LO 2-6Walton Boat Company makes inexpensive aluminum fishing boats. Production is seasonal, with considerable activity occurring in thespring and summer. Sales and production tend to decline in the fall and winter months. During year 2, the high point in activityoccurred in June when it produced 202 boats at a total cost of $161,160. The low point in production occurred in January when itproduced 38 boats at a total cost of $48,000.Requireda. Use the high-low method to estimate the amount of fixed cost incurred each month by Walton Boat Company.b. Determine the total estimated cost if 160 boats are made.a. Fixed costb. Total estimated cost

A. Fixed CostStep 1: Calculate Variable Cost per UnitChange in Cost = $161,160 - $48,000 =…

Answered: Exercise 2-16A (Algo) Estimating fixed…

Principles of Accounting Volume 2

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Chapter3: Cost-volume-profit Analysis

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Problem 1PB: A company sells mulch by the cubic yard. Grade A much sells for $150 per cubic yard and has variable...

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