Question
High-low method Evander Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the
High-low method
Evander Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows:
| Units Produced | Total Costs |
|---|---|
| 1,140 | $215,460 |
| 1,840 | 225,750 |
| 3,040 | 335,160 |
a. Determine the variable cost per unit and the total fixed cost. Variable cost $: Total fixed cost $:
b. Based on part (a), estimate the total cost for 1,500 units of production. Total cost for 1,500 units $:
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Records And Information Management
Authors: William Saffady
4th Edition
1538152541, 978-1538152546
