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

-Using the high-low method, what is the variable cost per unit at Snow Enterprises?
A) $0.74
B) $0.25
C) $1.08
D) $4.00

Question

To follow is information about the units produced and total manufacturing costs for Snow Enterprises for the past six months.
 
-Using the high-low method, what is the variable cost per unit at Snow Enterprises?
A) $0.74 
B) $0.25 
C) $1.08 
D) $4.00

Quizplus · Accepted Answer

The high-low method calculates the variable cost per unit by taking the difference in total costs between the highest and lowest activity levels and dividing it by the difference in units produced at those levels.

To Follow Is Information About the Units Produced and Total