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High - Low With your Total Fixed Cost and Variable Cost per Unit from the high - low method, compute the total cost for the
HighLow
With your Total Fixed Cost and Variable Cost per Unit from the highlow method, compute the total cost for the following values of Number of Units Produced
Why does the total cost computed for units not match the data for January?
a The highlow method is accurate only for months in which production is at full capacity.
b The highlow method only gives accurate data when fixed costs are zero.
c The highlow method gives a formula for the estimated total cost and may not match levels of production other than the highest and lowest.
d The highlow method gives accurate data only for levels of production outside the relevant range.
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