[sasajib]

Hello guys…
I am new to ACCA… And stuck in a question of High Low method…
The question is ….

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A business has experienced the following labour costs :

Code:

Output Cost
(units) ($)
7000 86000
12000 141000
9000 97500

Fixed costs increase by $15000 for output in excess of 10000 units.
Using the high low method what is the estimated cost of producing 14000 units?
A. 142000
B. 157000
C. 163000
D. 178000

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Can anyone solve the problem and explain (why)…
Thanks in advance….
Shakil

[Author]

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