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Presented Below Is the Production Data for the First Six

Question 120

Multiple Choice

Presented below is the production data for the first six months of the year showing the mixed costs incurred by Euclid Company.  Month  Cost  Units  January $7,5004,000 February 13,0007,500 March 11,5009,000 April 11,70011,500 May 13,50012,000 June 11,8506,000\begin{array} { l l r } \text { Month } & \text { Cost } & \text { Units } \\\text { January } & \$ 7,500 & 4,000 \\\text { February } & 13,000 & 7,500 \\\text { March } & 11,500 & 9,000 \\\text { April } & 11,700 & 11,500 \\\text { May } & 13,500 & 12,000 \\\text { June } & 11,850 & 6,000\end{array} Euclid Company uses the high?low method to analyze mixed costs.The variable cost per unit is_____.


A) $1.25
B) $0.75
C) $1.31
D) $0.132

Correct Answer:

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