Solutions to Chapter 6 Problems
If the conveyor belt moves regardless of the number of cars on it, the electricity costs to power the conveyor belt would be a fixed cost. 2. Variable costs per car = = $5.15 per car. Total costs estimated for 90,000 cars = $110,000 + ($5.15 × 90,000) = $573,500. 10-23 (15–20 min.) Estimating a cost function, high-low method. 1. ................
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