The manufacturing costs of Rosenthal Industries for the first three months of the year follow:   Total Costs Units Produced January $1,890,000   22,500 units February 2,800,000   35,000   March 4,230,000   55,000   Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost. a.  Variable cost per unit $fill in the blank 1 b.  Total fixed cost $fill in the blank 2

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
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Problem 1BE: High-low method The manufacturing costs of Rosenthal Industries for the first three months of the...
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The manufacturing costs of Rosenthal Industries for the first three months of the year follow:

  Total Costs Units Produced
January $1,890,000   22,500 units
February 2,800,000   35,000  
March 4,230,000   55,000  

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

a.  Variable cost per unit $fill in the blank 1
b.  Total fixed cost $fill in the blank 2
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