To follow is information about the units produced and total manufacturing costs for Pine Enterprises for the past six months.

Using the high-low method,what is the variable cost per unit?
A)$1.44
B)$1.04
C)$0.50
D)$2.00

Question

To follow is information about the units produced and total manufacturing costs for Pine Enterprises for the past six months.

Using the high-low method,what is the variable cost per unit?
A)$1.44 
B)$1.04 
C)$0.50 
D)$2.00

Quizplus · Accepted Answer

C)
Highest cost $8,150 Highest activity 7,800
Lowest cost $6,500 Lowest activity 4,500
Difference $1,650 3,300
NOW divide the difference in the cost by the difference in the activity equals Variable cost per unit.$1,650/3,300 = $ .50

To Follow Is Information About the Units Produced and Total