What is the formula to calculate the variable rate of a mixed cost when using the high-low method?
A)total cost at high point ? (variable rate × output at high point)
B)total cost at high point ? (variable rate × output at low point)
C) $\frac{\text {high point output - low point output }}{\text { high point cost - low point cost}}$
D) $\frac{\text { high point cost }- \text { low point cost }}{\text { high point output - low point output }}$

Question

Quizplus · Accepted Answer

The correct formula to calculate the variable rate of a mixed cost using the high-low method is $\frac{\text { high point cost }- \text { low point cost }}{\text { high point output - low point output }}$. This formula calculates the slope of the line connecting the high and low points, representing the variable cost per unit of output.

What Is the Formula to Calculate the Variable Rate of a Mixed