The following information is available for a company's cost of sales over the last five months. Month Units sold Cost of sales January 400 $31,000 February 800 $37,000 March 1,600 $49,000 April 2,400 $61,000 What is the estimated variable cost of sales per unit sold using the high-low method?

The following information is available for a company's cost of sales over the last five months. Month Units sold Cost of sales January 400 $31,000 February 800 $37,000 March 1,600 $49,000 April 2,400 $61,000 What is the estimated variable cost of sales per unit sold using the high-low method?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 3DQ: Suppose a company finds that shipping cost is 3,560 each month plus 6.70 per package shipped. What...

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Question

Use table information to answer

The following information is available for a company's
cost of sales over the last five months.
Month Units sold Cost of sales
January 400
$31,000
February 800
$37,000
March
1,600
$49,000
April
2,400
$61,000
What is the estimated variable cost of sales per unit sold
using the high-low method?

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