Given the following cost and activity observations for Alifix Company's utilities,use the highlow method to calculate Alifix's fixed costs per month.
A)$4,516
B)$9,100
C)$5,750
D)$2,400

Question

Given the following cost and activity observations for Alifix Company's utilities,use the high­low method to calculate Alifix's fixed costs per month.
A)$4,516
B)$9,100
C)$5,750
D)$2,400

Quizplus · Accepted Answer

The high-low method calculates fixed costs by subtracting the variable cost per unit from the total cost at the high activity level and then dividing the result by the difference in activity levels. In this case, the variable cost per unit is $0.50 and the fixed costs are $4,516.

Given the Following Cost and Activity Observations for Alifix Company's