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Apply the high-low method of cost analysis to the three cost data groups shown below. Volume (applicable to each group) Group A Costs Group B

Apply the high-low method of cost analysis to the three cost data groups shown below.

Volume (applicable to each group) Group A Costs Group B Costs Group C Costs
2,000 $3,900 $1,500 $3,600
12,000 18,900 9,000 3,600
16,000 24,900 12,000 3,600
20,000 30,900 15,000 3,600

What cost behavior patterns are apparent? Express each as a cost formula: Total cost = Fixed costs + (Variable cost x Volume).

Group Fixed costs + (Variable cost x Volume)
A Answer + Answer x Volume
B Answer + Answer x Volume
C Answer + Answer x Volume

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