Answer:
Variable cost per unit= $250 per unit
Fixed costs= $2,100
Explanation:
Giving the following information:
June= 9 $5,450
July= 18 $6,900
August= 12 $5,100
September= 15 $6,000
October= 21 $6,900
November= 24 $8,100
December= 6 $3,600
To calculate the fixed and variable costs under the high-low method, we need to use the following formulas:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (8,100 - 3,600) / (24 - 6)
Variable cost per unit= $250 per unit
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 8,100 - (250*24)
Fixed costs= $2,100
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 3,600 - (250*6)
Fixed costs= $2,100
