Hi sir John. I have a problem regarding step up cost in high low method questions. Please help me through this question.
Production units: 1200-900-1400
Total costs : 66600-58200-68200
The variable cost per unit is constant up to level of 2000 units but step up of 6000$ in monthly fixed cost occurs when production reaches 1100 units per month.
What is the total costs for the month when 1000 units are produced?