Using the high-low method, calculate the fixed cost of leasing.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Glascro Company manufactures skis. The management accountant wants to calculate the fixed and variable
costs associated with the leasing of machinery. Data for the past four months were collected as follows:
Month
Lease cost
Machine hours
April
$15,000
800
Мay
10,000
600
June
12,000
770
July
16,000
1,000
Using the high-low method, calculate the fixed cost of leasing.
Transcribed Image Text:Glascro Company manufactures skis. The management accountant wants to calculate the fixed and variable costs associated with the leasing of machinery. Data for the past four months were collected as follows: Month Lease cost Machine hours April $15,000 800 Мay 10,000 600 June 12,000 770 July 16,000 1,000 Using the high-low method, calculate the fixed cost of leasing.
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