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Hi everyone,
I am somehow desperate about the question 38. How is the variable cost determined? I cant find the “20,000 $/4,000 units” in the question?? Can anyone help?
Thanks a lot!
Hi,
You need to use High low method to get var, cost and fixed cost
See below, you are told
units : 10,000 cost: 130,000 (1)
units: 14,000, cost: 150,000 (2)
(2) -(1) —>
4000 var = 20,000
var = 5
then you will get fixed cost as well
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