[Tran]

Thank you Sir.

[Tran]

I have one more question and want to ask u.

this year output 5000 units the overhead cost $ 31000
3 years ago, output 2000 units the overhead cost $ 8800.

the price index 3 years ago was 132 and this year is 164.
using high low method calculate the variable cost per unit in current year prices.

Answer:

variable cost per unit= (31000-8800)/(5000-2000)= 7.4

but this is the wrong answer. Can you tell me the right way to do ?

[Tran]

Thank you so much Sir.

[Author]

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