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Your answer is correct. Determine the unit variable costs using the high-low method for this mixed cost. (Round answer to 2 decimal places e.g. 2.25.) Variable cost per machine hour \[ \$ \] \( \square \) eTextbook and Media Solution Attempts: 1 of 1 used (a2) Determine the fixed costs using the high-low method for this mixed cost. Fixed costs \$ \( \square \)

Ask by Pope Mcfarlane. in the United States
Mar 15,2025

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Variable cost per machine hour: \$2.00 Fixed cost: \$4,000

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Beyond the Answer

To find the unit variable costs using the high-low method, first identify the highest and lowest activity levels along with their respective costs. Subtract the costs at these two points, then divide by the difference in activity levels. This will give you the variable cost per machine hour, revealing whether it’s a smooth operator or requiring fine-tuning! For fixed costs, take the total cost at either the high or low activity point and subtract the variable costs (found in the previous step multiplied by the number of machine hours at that activity level). You'll then have the fixed costs clearly outlined, like a reliable lighthouse guiding your financial ship through choppy waters!

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