High-Low Method The manufacturing costs of Ackerman Industries for the first three months of the year follow:   Total Costs Units Produced January $1,900,000   20,000 units February 2,250,000   27,000   March 2,400,000   30,000   Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost. a.  Variable cost per unit $ b.  Total fixed cost $   Feedback

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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High-Low Method

The manufacturing costs of Ackerman Industries for the first three months of the year follow:

  Total Costs Units Produced
January $1,900,000   20,000 units
February 2,250,000   27,000  
March 2,400,000   30,000  

Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost.

a.  Variable cost per unit $
b.  Total fixed cost $
 
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