Cost Management: A Strategic Emphasis 7th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins

Exercise 46

Sanders Bears produces stuffed animals. Sanders is in the process of implementing a cost forecasting system using the high-low method. The variable cost per animal is $2 and the high and low costs used are $80,000 for 30,0000 animals and $40,000 for 10,000 animals. What is the value of the fixed cost for the cost estimating equation