Problem
Corris Co. accumulates the following data concerning a mixed cost, using miles as the activity level.
|
Miles Driven
|
Total Cost
|
|
January
|
10,000
|
$17,000
|
|
February
|
8,000
|
13,500
|
|
March
|
9,000
|
14,400
|
|
April
|
7,000
|
12,500
|
Compute the variable and fixed cost elements using the high-low method. (Round variable cost to 2 decimal places, e.g. 15.25.)