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managerial accounting: High-low method

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Randall Sports has collected the following information over the last six months.

Month Units produced Total costs
March 10,000 $25,600
April 12,000 26,200
May 18,000 27,600
June 13,000 26,450
July 12,000 26,000
August 15,000 26,500

Using the high-low method, what is the variable cost per unit?

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Solution Summary

The solution uses the high-low method to determine what is the variable cost per unit.

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Solution:

Highest variable: May: 18,000 units @ $27,600
Lowest variable: ...

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Radhika Lakshmi, MPhil
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  • MPhil, Madurai Kamaraj University
  • MCom, Annamalai University
  • IATA, International Air Transport Association
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