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Diamond Corporation, which uses the high-low method, makes a single product. The company incurs three different cost types (A, B, and C) and has a
Diamond Corporation, which uses the high-low method, makes a single product. The company incurs three different cost types (A, B, and C) and has a relevant range of operation between 2,500 units and 10,000 units per month. Per-unit costs at two different activity levels for each cost type are presented below. Type B Type C Total 5,000 units 7,500 units $ 6 $ 15 $ 6 $ 27 6 10 5 21 If Diamond produces 10,000 units, the total cost would be: $91,500 $63,000 $180,000 $108,000
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