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Question6 0. Burns Company collected the following data on its selling expenses for the last five months to learn how this cost behaves Year Selling Expense Sales Volume Jan $212,250 650,000 Feb Mar 225,000 Apr May 225.250 675,000 206,250 625,000 700,000 650,000 212,750 Burns Companys fixed selling expenses are $43,.375 $50,000 $59,625 $178,500
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To recognize cost behavior, High-Low costing method is used:

Solution: Answer: $ 50,000 Explanation: Cost 700000 225000 625000 206250 75000 18750 Units Highest volume Lowest volume Difference Variable cost per unit-(18750/75000)0.25 Fixed cost- Total Cost - Variable cost (225000)-(700000*0.25)50,000

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