Q1) Using high-low method, compute the variable cost per unit?
The Nelson Company experienced the following costs in 2007:
| Direct materials |
$2.25/unit |
| Direct labor |
$4.10/unit |
| Variable manufacturing overhead |
$.75/unit |
| Variable selling |
$3.00/unit |
| Fixed manufacturing overhead |
$60,000 |
| Fixed selling |
$35,000 |
| Fixed administrative |
$20,000
|
Q2) Company has offer from wholesaler to buy part for $31 per unit. If company decides to accept offer cost for this part will increase or decrease by__ per unit?