  # High-Low MethodThe manufacturing costs of Ackerman Industries for the first three months of the year follow: Total CostsUnits ProducedJanuary\$1,900,000 20,000unitsFebruary2,250,000 27,000 March2,400,000 30,000 Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost.a.  Variable cost per unit\$b.  Total fixed cost\$ Feedback

Question

High-Low Method

The manufacturing costs of Ackerman Industries for the first three months of the year follow:

 Total Costs Units Produced January \$1,900,000 20,000 units February 2,250,000 27,000 March 2,400,000 30,000

Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost.

 a.  Variable cost per unit \$ b.  Total fixed cost \$

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check_circleExpert Solution
Step 1

Calculate the difference in the total costs and units produced under High-low method.

Hint: The high-low level is identified by using the total costs.

Step 2

a. Calculate the variable cost per unit:

Step 3

Calculate the variable cost under 30,000 ...

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