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One of Matthew Corporations competitors has learned that Matthew has a total expense per unit of $1.50 at the 15,000 unit le

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Correct answer--------26,400

Working

First High low method will be used to calculate fixed cost in total and variable cost per unit.

Cost No. of activities
A High Level $          29,000.00* 20000
B Low Level $          22,500.00 15000
C=A-B Difference $             6,500.00 $              5,000.00
A Cost difference $             6,500.00
B No. of activities difference 5000
C=A/B Variable cost per unit $                     1.30
High Level Low Level
A No. of activities 20000 15000
B Variable cost per unit $                1.3000 $                  1.3000
C=AxB Total Variable cost $          26,000.00 $            19,500.00
D Total cost $          29,000.00 $            22,500.00
E=D-C Total fixed cost $             3,000.00 $              3,000.00

*20000 x 1.45

No of Units 18000
Variable cost $          23,400.00
Fixed cost $            3,000.00
Total cost $          26,400.00
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