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Step 2 is to separate the cost information into their fixed and variable components. High-Low Ind. Ind. Factory Other Units DM DL Labor Mat Electricity
Step 2 is to separate the cost information into their fixed and variable components. High-Low Ind. Ind. Factory Other Units DM DL Labor Mat Electricity Ins. OH Week 1 400 $ 300 $ 500 $ 180 $ 300 $ 115 $ 125 $ 310 Week 2 500 375 625 200 300 125 125 360 Week 3 600 450 750 220 300 135 125 410 Total 1500 $ 1,125 $ 1,875 $ 600 $ 900.00 $ 375 $ 375 $ 1,080 VC/Unit (High$-Low$)/(High Units-Low Units) FC Solve for fixed cost using cost equation (high cost and high units or low cost and low units)
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