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High low method - sample question

Shipping costs at Columbia Mining Company are a mixture of variable and fixed components The company shipped 7,000 tons of coal for 352,500 in shipping costs in February and 9,000 tons for 451,500 in March Assuming that this activity is within the relevant range, expected shipping costs for 10,000 tons would be:

501,000
509,571.428571
489,000
495,000

Solution Summary

The solution explains the use of high low method to calculate the total costs. It is a very brief calculation.

$2.19