High-Low method
Not what you're looking for?
Johnson Company has observed that at an activity level of 5,000 units the cost for maintenance is $6,500 and at 10,000 units the cost for maintenance is $9,000. Using the high-low method, the cost formula for maintenance is
$4,000 plus $.50 per unit
$3,000 plus $.60 per unit
$.90 per unit
$1.30 per unit
Purchase this Solution
Solution Summary
The solution explains how to determine the cost formula using the high low method
Solution Preview
We separate the fixed and variable costs
Variable cost = ...
Purchase this Solution
Free BrainMass Quizzes
Basic Social Media Concepts
The quiz will test your knowledge on basic social media concepts.
Change and Resistance within Organizations
This quiz intended to help students understand change and resistance in organizations
Marketing Management Philosophies Quiz
A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.