Question: High-Low Method
The manufacturing costs of Erin Industries for three months of the year are provided below.
|
Total Costs |
Production |
| January |
$192,780 |
|
1,020 units |
|
| February |
256,180 |
|
1,910 |
|
| March |
299,880 |
|
2,720 |
|
Using the high-low method, determine
(a) the variable cost per unit and
(b) the total fixed cost.
Round all answers to the nearest whole dollar.
a. Variable cost per unit
b. Total fixed cost