Question: Favero Ltd accumulates the following data concerning a mixed cost using kilometres as the activity level. Month Kilometres driven Total cost January 8 000 $16

Favero Ltd accumulates the following data concerning a mixed cost using kilometres as the activity level.


Month

Kilometres driven

Total cost

January

8 000

$16 550

February

7 500

$15 550

March

8 500

$17 550

April

8 200

$16 950


Required

Compute the fixed and variable cost elements using the high-low method

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