[waseem]

Activity level Total costs
1000 6000
1500 8750
2000 10500

Fixed cost is stepped up at 1500 units. calculate total cost for 500 units.

please solve

[waseem]

the variable per unit cost is 4 not 5
fixed cost for no 1 is $ 2000
fixed cost for no 2 is $4000
A:800 UNITS: $2000+800*4=$5200
B:2000 UNITS:$4000+2000*$12000
THE CORRECT ANSWER OF THAT PROBLEMS OF STEPPED FIXED COST..

[waseem]

Haywhai08 your answer is wrong today in class i checked from my class teacher he said this is wrong answer..

[waseem]

could you please define stepped fixed cost why we use this cost in high low method ?

[waseem]

i am thankful to you Haywhai08

[Author]

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