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    Estimating the variable costs and fixed costs

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    1. Estimating the variable costs and fixed costs

    I need assistance with the attached homework probem 5-11

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    HIGH-LOW METHOD:
    This is a method for separating costs into fixed and variable components, based upon the difference between costs at the highest and lowest observed levels of activity
    With the high-low technique, the highest and lowest levels of activity are identified for a period of time. Say the highest repair paid is $2000, and the lowest is $1500. The difference in cost between the highest and lowest level of activity represents the variable cost ($2000 - $1500 = $500) associated with the change ...

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    This provides the steps to calculate the Estimating the variable costs and fixed costs using High low method

    $2.19

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