What is the relevant range


Response to the following problem:

Saratoga Company has assembled the following data about its variable costs:

Level of Activity........................ Total Variable Cost

2,000 units..............................$ 46,000

3,000 units.................................72,000

4,000 units.................................96,000

5,000 units............................... 120,000

6,000 units............................... 150,000

The company is currently producing 3,300 units. According to these data, what is the relevant range over which the company can assume that the variable cost per unit is constant?

Solution Preview :

Prepared by a verified Expert
Cost Accounting: What is the relevant range
Reference No:- TGS02072558

Now Priced at $20 (50% Discount)

Recommended (96%)

Rated (4.8/5)