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Variable costs per unit for Pepsi Co.

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Please help with the following problem.

The production data for Pepsi Co. for the first six months of the year showing the mixed costs incurred by the Company.
Month Cost........... Units
January $7,500....... 4,000
February 13,000...... 7,500
March 11,500...... 9,000
April 11,700...... 11,500
May 13,500...... 12,000
June 11,850...... 6,000
Pepsi Company uses the high low method to analyze mixed costs. What are the variable cost per unit?

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Solution Summary

This solution helps with a problem regarding analysis of mixed costs. It helps calculate the variable costs per unit.

Solution Preview

= (13,500 - 7,500) / (4,000 - 12,000)
= 6,000 / -8,000
= (2,000)

Formula: ...

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