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jolli1 [7]
3 years ago
13

The manufacturing costs of Calico Industries for three months of the year are provided below. ​

Business
1 answer:
kirill [66]3 years ago
8 0

Answer:

b) $0.40 per unit and $8,000.

Explanation:

The computation of the high-low method, the variable cost per unit and the total fixed costs is given below:-

                          Total Cost            Production Units

April                  $120,000                    280,000

May                   $74,000                      165,000

June                  $90,900                      230,000

Using High Low method  

Variable Cost per unit = (High Cost - low Cost) ÷ (High Cost Units - low Cost Units)

= ($120,000 - $74,000) ÷ (280,000  - 165,000 )

= $46,000 ÷ 115,000

= $0.40

Fixed Cost = Total Cost - Variable Cost per unit × Production unit

= $120,000 - $0.40 × 280,000

= $8,000

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Answer:

(I)

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Explanation:

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<h3>What is Economists?</h3>

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