BPP, Practice Kit, Quesion 38 — OpenTuition Forums

BBoot8115y ago

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!

Ssue88815y ago#1

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

BBoot8115y ago#2

Thank you!
Best luck for the exam