Davies Company's Utility Cost at various levels of activity are shown below: Month Units Utility Cost April 70,000 $198,000 May 60,000 $174,000 June 80,000 $222,000 July 90,000 $246,000 Given the above information, use the High-Low method to compute the variable and fixed portion of utility cost.

Davies Company's Utility Cost at various levels of activity are shown below: Month Units Utility Cost April 70,000 $198,000 May 60,000 $174,000 June 80,000 $222,000 July 90,000 $246,000 Given the above information, use the High-Low method to compute the variable and fixed portion of utility cost.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 2DQ: Which of the following costs would be classified as variable and which would be classified as fixed,...

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Davies Company's Utility Cost at various levels of activity are
shown below:
Month Units Utility Cost
April 70,000 $198,000
May
60,000 $174,000
June
80,000 $222,000
July
90,000 $246,000
Given the above information, use the High-Low method to
compute the variable and fixed portion of utility cost.

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