High$-$Low Method

Apply the high$-$low method of cost analysis to the three cost data groups shown below.

Volume

$($applicable to

each group$)$ Group A

Costs Group B

Costs Group C

Costs

$2,000$ $$4,160$ $$1,600$ $$3,840$

$12,00020,1609,6003,840$

$16,00026,56012,8003,840$

$20,00032,96016,0003,840$

What cost behavior patterns are apparent? Express each as a cost formula: Total cost $=$ Fixed costs $+($Variable cost x Volume$).$

Group Fixed costs $+($Variable cost x Volume$)$

A Answer

$0$

$+$ Answer

$0$

x Volume

B Answer

$0$

$+$ Answer

$0$

x Volume

C Answer

$0$

$+$ Answer

$0$

x Volume