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Sales salaries and commissions are $10,000 when 80,000 units are sold, and $14,000 when 120,000 units are sold. Using the high-low method, what is the

Sales salaries and commissions are $10,000 when 80,000 units are sold, and $14,000 when 120,000 units are sold. Using the high-low method, what is the fixed portion of sales salaries and commissions?

#6 (2 pt.) Solve for the cost line equation using the high-low method:

Month Units Produced Total Cost 1 4,500 $38,000 2 11,000 $52,000 3 12,000 $56,000 4 5,500 $40,000 5 9,000 $47,000 6 10,500 $52,000 7 7,500 $44,000 8 5,000 $41,000 9 11,500 $52,000 10 6,000 $43,000

Units Produced

Total Cost

High

Low

Change

Variable Cost Per Unit (Slope) =

Total Fixed Cost =

Cost Equation =

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