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Question 5 of 5 < > View Policies Show Attempt History Current Attempt in Progress Bramble Gravity Grips produces spike sets
Question 5 of 5 < 1/5 Machine Hours High point 78500 $ 8650 Low point 48300 $ 5932 Using the high-low method, compute the var
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Answer #1

A)Using the high-low method:

Sales Volume Marketing Costs
High activity level 78500 $ 8650
Low activity level 48300 $ 5932
Change 30200 $ 2718

Variable cost per unit = $2718/30200 = $0.09

Fixed cost (at high level) = $8650 - (78500 x $0.09) = $8650 - $7065 = $1585

Fixed cost (at low level) = $5932 - (48300 x $0.09) = $5932 - $4347 = $1585

b)

Fixed marketing cost $ 1585
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