Williams Inc. produces fluorescent lightbulbs for commercial use. The accounting manager isattempting to estimate the total cost for the next quarter using the high-low method. He has compileddata and found the high and low costs are $10,000 and $6,000, respectively, and the associated costdrivers are 7,000 and 3,000 packs, respectively. What is the value for b (the variable cost per unit)?What is the value for a (the fixed quantity)?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Williams Inc. produces fluorescent lightbulbs for commercial use. The accounting manager is
attempting to estimate the total cost for the next quarter using the high-low method. He has compiled
data and found the high and low costs are $10,000 and $6,000, respectively, and the associated cost
drivers are 7,000 and 3,000 packs, respectively. What is the value for b (the variable cost per unit)?
What is the value for a (the fixed quantity)?

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