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High-Low Method The manufacturing costs of Ackerman Industries for the first three months of the year follow: January Februar

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Answer #1

Variable cost per unit=[Total cost at highest level-Total cost at lowest level]/(Highest level-Lowest level)

=(389760-250560)/(4205-1305)

=$48 per unit

Total fixed cost=389760-(48*4205)=$187920

Variable cost per unit $48 per unit
Total fixed cost $187920
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