Variable cost per unit? Carson, which uses the high-low method ofestimating costs, reported total costs of $24per unit when production was at its lowestlevel, at 10,000 units. When productiondoubled to its highest level, the total cost perunit dropped to $15. Carson would estimatethe variable cost per unit?

Step 1: Difference in units Lowest units = 10,000 unitsHighest units = 10,000 units x 2 = 20,000…

Answered: Carson, which uses the high-low method…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Carson, which uses the high-low method of estimating costs, reported total costs of $24 per unit when production was at its lowest level, at 10,000 units. When production doubled to its highest level, the total cost per unit dropped to $15. Carson would estimate the variable cost per unit?