High-Low Method

The manufacturing costs of Lightfoot Industries for three months of the year follow:

	Total Costs		Units Produced
January	$640,000		30,000 units
February	900,000		40,000
March	350,000		12,500

Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost.

a. Variable cost per unit

$

b. Total fixed cost

$ High-Low Method The manufacturing costs of Carrefour Enterprises for the first three months of the year follow: Total Costs Units Produced June $300,000 2,700 units July 440,000 5,500 August 325,000 3,500 Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost. a. Variable cost per unit $ b. Total fixed cost $ Contribution Margin Michigan Company sells 10,000 units at $100 per unit. Variable costs are $75 per unit, and fixed costs are $125,000. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations. a. Contribution margin ratio (Round to one decimal place.) % b. Unit contribution margin $ per unit c. Income from operations $ Contribution Margin Weidner Company sells 22,000 units at $30 per unit. Variable costs are $24 per unit, and fixed costs are $40,000. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations. a. Contribution margin ratio % b. Unit contribution margin $ per unit c. Income from operations $