Campus Copy & Printing wants to predict copy
machine repair expense at different levels of copying activity (number of copies made). The following
data have been gathered:
Month Repair Expense Copies Made
May $ 8,500 300,000
June 12,500 500,000
July 20,500 900,000
August 16,500 700,000
September 10,500 400,000
Determine the fixed and variable components of repair expense using the high-low method.Use
copies made as the measure of activity.
In the high low method we take the highest and the lowest values
Variable cost = ...
The solution explains the use of High-Low Method in separating the fixed and variable parts of a mixed cost