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high low method

TGTushar Gujral5y ago
sir i was attempting the quick practice question section on open tuition on highlow method and encountered with one doubt sir in question 2 need to ask, so whenever there is an increase in the fixed cost the variable cost decreases with the same amount
John MoffatJohn MoffatTutor5y ago#1
The total cost is always the total variable cost plus the total fixed cost. Therefore if 5,000 of the increase in the total cost is due to an increase in fixed costs, then the increase in the variable cost must be the remainder.
TGTushar Gujral5y ago#2
oh, yes sir thank you
John MoffatJohn MoffatTutor5y ago#3
You are welcome :-)
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