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    High-Low Method on estimating cost behavior

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    Gentlemen produces and packages his own brand applesauce. A high low cost behavior needs to happen on the inventory on the company's energy cost behavior.

    Month Pints of applesauce produced Energy cost
    Jan. 35,000 $23,400
    Feb. 21,000 22,100
    Mar. 22,000 22,000
    Apr. 24,000 22,450
    May 30,000 22,900
    Jun. 32,000 23,350
    Jul. 40,000 28,000
    Aug. 30,000 22,800
    Sep. 30,000 23,000
    Oct. 28,000 22,700
    Nov. 41,000 24,100
    Dec. 39,000 24,950

    a. Figure the high-low method to estimate the company's energy cost behavior and express it in equation form.

    b. Predict the enery cost for a month in which 26,000 pints of applesauce are produced.

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    https://brainmass.com/business/accounting/high-low-method-on-estimating-cost-behavior-251176

    Solution Preview

    a. Figure the high-low method to estimate the company's energy cost behavior and express it in equation form.

    Highest Applesauce produced = 41,000 ; asociated energy cost = 24,100
    Lowest ...

    $2.19

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