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Evander inc, has decided to use the high-low method to estimake the sotai cost and the foxed and varable cost cemponents of the total cost.
Evander inc, has decided to use the high-low method to estimake the sotai cost and the foxed and varable cost cemponents of the total cost. The data for varicus levels of production are as follows: a. Determine the variable cost per unit and the total fixed cost. Variable cast 7 Total fixed cost 1 x b. Based on part (a), estimate the total cost for 2,480 units of production. Total cost for 2,480 units s Divide the difference between the fighert and fowetf total costs by the dference between the fighest and lowest productuon unas. Mileiply the varable unit cost Oy the number of units productd, subtract this variable cost fram the total cont to arne at the fixed cost. The resuting amount should be the same for either the nighest or lawest production level
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