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The below information is provided by Mango International.
The below information is provided by Mango International concerning its units produced and total costs. Period Units Produced
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Answer #1
Computation of Variable cost per Unit using High Low Method
Variable cost per Unit= ( Cost at Highest Volume- Cost at Lowest Volume)/( Highest olume- Lowest Volume)
=(10030-2610)/(3710-0)= $2.00 Per Unit
Computaiton of Fixed Cost- Mango Internation
Total Cost at High Point (a) $10,030.00
Variable cost at High Point
Volume at the High Point $3,710.00
X Variable cost per Unit $2.00
Total Variable cost at High Point (b) $7,420.00
Total Fixed Cost (a-b) $2,610.00
Total Cost at Low Point (a) $2,610.00
Variable cost at Low Point
Volume at the Low Point $0.00
X Variable cost per Unit $2.00
Total Variable cost at Low Point (b) $0.00
Total Fixed Cost (a-b) $2,610.00
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