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Abdulrahman Company is developing a cost function for its total costs using the high-low method. The following data have been collected for the past year:
Abdulrahman Company is developing a cost function for its total costs using the high-low method.
The following data have been collected for the past year:
Number of
units produced
Quarter Total Costs
1 5,000 SAR 850
2 6,500 925
3 7,000 950
4 8,000 1,000
Calculate the following amounts:
a. The variable cost per unit
b. The fixed cost
c. The estimated total cost for 9,000 units
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