TYPES OF COST AND COST BEHAVIOUR

Have you watched the free lectures covering the high-low method? (Because I certainly cannot type out the lecture again here!!) (Our lectures are a complete course covering everything you need to be able to pass Paper F2 well.) The variable cost per unit = (251750 - 246500) / (18500 - 17000). When you know the variable cost per unit, you can then take either of the two output levels, calculate the total variable cost, and the rest of the cost is then the fixed cost. Again, you really must either watch the lectures (or if you don't want to then study from a Study Text - there is not much point in attempting questions until you have studied the topics.)