Katy Lou products has presented the following information for the past eight months operations:

1. Using the high-low method, calculate the variable cost per unit.

2. Using the high-low method, calculate the fixed cost per month..

3. What would total costs be for a month with 5,000 units produced?

Transcribed Image Text:

Month April May June July August September October November Units 8,000 6,400 3,800 5,600 7,000 8,400 7,800 6,800 Total Cost $30,400 $25,800 $18,300 $23,200 $26,000 $29,800 $26,500 $25,700 Month April May June July August September October November Units 8,000 6,400 3,800 5,600 7,000 8,400 7,800 6,800 Total Cost $30,400 $25,800 $18,300 $23,200 $26,000 $29,800 $26,500 $25,700

Answer rating: 100% (QA)

High low Method 1 Variable cost per unit Total cost at highest u... View the full answer