Question

The below information is provided by Mango International concerning its units produced and total costs. Period Units Produced Period 6 470 870 1. 270 1,670 Total Costs $2,570 3. 170 3, 770 4,370 4,970 Units Produced 2.070 2,470 2.870 3, 270 3,670 Total Costs $5.57 6. 170 6.77 7,370 8,442 10 Estimate total costs if 3,070 units are produced. Complete the below table to calculate the fixed cost and variable cost of sales by using the high-low method High-Low method - Calculation of variable cost per unit High-Low method - Calculation of fixed costs Total cost at the high point Variable costs at the high point: Volume at the high point: Variable cost per unit Total variable costs at the high point Total foed costs / / / Total cost at the low point Variable costs at the low point Volume at the low point Variable cost per unit Total variable costs at the low point Total fixed costs Estmated total cost

Answer 1

High low method-Variable cost per unit
variable cost per unit	Change in Cost	(8442-2570)	=	1.60 per unit
	Change in Unit	(3670-0)
High low method-Calculate fixed cost
Total cost at the high point		8442
variable cost at the high point
Volume at the high point	3670
variable cost per unit	1.60
Total Variable cost at the high point		5872
Estimated fixed cost		2570
Total cost at the low point		2570
variable cost at the low point
Volume at the low point	0
Variable cost per unit	1.60
Total Variable costs at the low point		0
Total Fixed cost		2570
Estimated total cost		2570