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it is most easy method to calculate the fixed cost/variable cost!
at what step you feel difficulty?high/low method with changes in the variable cost per unit,for example:2003
output total cost
26 6566
30 6510
33 6800
44 6985
48 7380
50 7310
when output is 80 units or more,another factory unit must be rented and fixed costs therefore increase by 100%. Variable cost per unit is forecast to rise by 10% in 2004. Explain me pls.please check this link… it is very helpful.. i want you to solve your question with your own.. after reading this page…
good luck
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