10 January, 17:30

# Blossom Corp. has collected the following data concerning its maintenance costs for the past 6 months.Units Produced Total CostJuly 18,070 \$41,663August 32,128 48,192September 36,144 55,220October 22,088 44,580November 40,160 74,798December 38,152 62.248Compute the variable cost per unit using the high-low method. (Round answer to 2 decimal places, e. g. 2.25.)Variable cost per unit \$ eCompute the fixed cost elements using the high-low method. Fixed costs \$

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Answers (1)
1. 10 January, 18:47
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Variable cost per unit = \$1.5 per unit

Fixed cost = \$14,558

Explanation:

Variable cost per unit

= cost at high activity - cost at low activity/High activity - low activity

=\$ (74,798 - \$41,663) / (40,160 - 18,070) units

= \$1.5 per unit

Fixed cost

Total fixed cost = cost at high activity - (vc per unit * high activity)

= 74,798 - (1.5 * 40,160)

= \$14,558

Variable cost per unit = \$1.5 per unit

Fixed cost = \$14,558
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