BE 20-1 High-Low Method 1The manufacturing costs of Rosenthal Industries for the first three months of the year follow:   Total Costs  Units Produced January $1,890,000   22,500 units February 2,800,000   35,000 March 4,230,000   55,000 Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost.

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BE 20-1

High-Low Method

  • 1The manufacturing costs of Rosenthal Industries for the first three months of the year follow:
 

Total Costs

 Units Produced

January

$1,890,000

  22,500 units

February

2,800,000

  35,000

March

4,230,000

  55,000

  • Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost.
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