High Low method

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July 25, 2016 at 8:04 am #328787
kimtranvn
Member
- Topics: 14
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Dear Sir,

In question 7 Dec. 2014 exam:

week Number of clients Total cost
1 400 36,880
2 440 39,840
3 420 36,800
4 460 40,000

In the 3rd week, number of clients is more than 1st week but total cost is less. What is the rule to calculate variable cost/unit?
Thanks,
KT
July 25, 2016 at 11:30 am #328857
John Moffat
Keymaster
- Topics: 57
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You use the highest and lowest independent variable (which in this case is the number of clients).
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