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The high-low method was used to estimate the cost equation. Given the following calculations that were completed, What is the cost equation using data provided
The high-low method was used to estimate the cost equation. Given the following calculations that were completed, What is the cost equation using data provided at the highest volume? Variable cost per unit A Cost at highest volume - Cost at lowest volume $31,000-$18,500 $12,500 Highest volume - Lowest volume 67,500 17,500 50,000 $31,000 fixed cost + ($0.25 per unit x 67,500 units) B $18,000 = fixed cost + ($0.30 per unit x 17,500 units) (C) $67,500= fixed cost + ($0.25 per unit x 17,500 units) D $12,500 fixed cost + ($0.50 per unit x 67,500 units) E = $0.25 per unit
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