Question: (1) What is the high-low method and under what circumstances would it be used? Is there anything about this method that would make you conclude

(1) What is the high-low method and under what circumstances would it be used? Is there anything about this method that would make you conclude it may be less than 100% reliable?

(2) How is contribution margin calculated? What about contribution margin ratio? Arent they the same thing? Why do we need both?

(3) Consider the following sales and cost data for Van Buren Company. The total sales and cost information is based on the sale of 20,000 units.

Total Per Unit

Sales $570,000 $28.50

Variable costs $387,600 $19.38

Fixed costs $140,000

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