Answer
Months |
Units |
Cost |
|
High Level |
June |
202 |
$ 145,800.00 |
Low Level |
Jan |
39 |
$ 48,000.00 |
Difference |
163 |
$ 97,800.00 |
|
A |
Difference in Cost |
$ 97,800.00 |
|
B |
Difference in units |
163 |
|
C = A/B |
Variable cost per unit |
$ 600.000 |
|
Working |
High Level |
Low Level |
|
A |
Total Cost |
$ 145,800.00 |
$ 48,000.00 |
B |
Total Units |
202 |
39 |
C |
Variable cost per unit |
$ 600.00 |
$ 600.00 |
D = B x C |
Total Variable cost |
$ 121,200.00 |
$ 23,400.00 |
E = A - D |
Total Fixed Cost |
$ 24,600.00 |
$ 24,600.00 |
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