Question: Mary is looking at the partial information left behind by her former supervisor, Lyle. She knows he used the high - low method to estimate

Mary is looking at the partial information left behind by her former supervisor, Lyle. She knows he used the high-low method to
estimate the cost function because she sees his cryptic "H-L" scribbled on the page. She sees that the high point related to 31
units at a total cost of $250.50. She also finds the total fixed cost estimate of $80. She can't find the low point written anywhere,
and she needs the variable cost in order to estimate next month's costs.
Help Mary determine the variable cost per unit and then predict next month's costs if 29 units are made. (Round answers to 2
decimal places, e.g.15.25.)
Variable cost per unit
$
Next month's costs
$
 Mary is looking at the partial information left behind by her

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!