What is the fixed cost per month? M Company's highest point of the total costwas $80,000 in June. Their point lowest costwas $65,000 in January. The company makesa single product. Production volumes in Juneand January were 16,000 and 8,000 units,respectively.What is the fixed cost per month?

To find the fixed cost per month, we can use the high-low method. The high-low method helps us…

Answered: M Company's highest point of the total…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 7PB: Marymount Company makes one product. In the month of April, it made 3,500 units. Workers were paid...

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M Company's highest point of the total cost was $80,000 in June. Their point lowest cost was $65,000 in January. The company makes a single product. Production volumes in June and January were 16,000 and 8,000 units, respectively. What is the fixed cost per month?