Explore BrainMass

Explore BrainMass

    High-Low Method

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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:

    Copy Machine

    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.

    © BrainMass Inc. brainmass.com June 4, 2020, 12:49 am ad1c9bdddf

    Solution Preview

    In the high low method we take the highest and the lowest values
    Variable cost = ...

    Solution Summary

    The solution explains the use of High-Low Method in separating the fixed and variable parts of a mixed cost