Determine the variable and the fixed cost using the High Low method and the following data:

Monthly Usage & Costs

Month	Quantity Usage	Total Utility Cost
July	520	1725
August	710	1850
September	400	1700
October	650	1820
November	730	1910
December	760	2000

Format:

Use Word or Google Sheets to record your answers.

Steps:

Find the month with the highest lowest usage and that will be the two points you will use to draw the cost line.

Take the difference between the highest and lowest points from step 1. The difference in the cost will go on top, and the difference between the usage will go on the bottom.**

Divide the difference between the cost by the difference between the usage, and this will be the variable cost per unit.**

Pick either the highest or lowest point and multiply the usage by the variable cost from step 4 and subtract this amount from the respective costs, and this will be the fixed cost.**

Then, test your fixed cost and variable cost per unit with the other values to see if it works.

Submit assignments through Canvas.

You are done.

**Be sure to show how you calculated the variable and fixed cost to get full credit.