Question: The High-Low method is used to classify mixed costs into fixed and variable costs. Using the data below, compute the variable cost and fixed cost

The High-Low method is used to classify mixed costs into fixed and variable costs. Using the data below, compute the variable cost and fixed cost elements using the high-low method. (It is recommended that you show your calculations for this question) (7 points)

MONTH	UNITS PRODUCED	TOTAL COST
January	20,000	$30,000
February	40,000	$48,000
March	35,000	$49,000
April	50,000	$63,000
May	30,000	$42,000

Answer: Total Fixed Costs:

Answer: Total Variable Costs:

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