27th Edition
WARREN + 5 others
ISBN: 9781337272094




27th Edition
WARREN + 5 others
ISBN: 9781337272094
Textbook Problem

High-low method

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

  Total Cost 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.


To determine

High-low method: It is the method of estimating the variable cost per unit and the fixed costs by using the highest and the lowest level of activities and their associated costs.

To determine: the variable cost per unit.


Determine the variable cost per unit.

Difference in total cost =$500,000 (refer Table 1)

Difference in units produced =10,000 units (refer Table 1)

Variablecostperunit =DifferenceintotalcostDifferenceinunitsproduced=$500,00010


To determine
the total fixed cost.

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

What is a relation? What is a tuple?

Accounting Information Systems

What is inflation and what causes it?

Principles of Microeconomics (MindTap Course List)

Explain cause-related marketing


COST OF PREFERRED STOCK INCLUDING FLOTATION Trivoli Industries plans to issue perpetual preferred stock with an...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

List and discuss three key facts about economic fluctuations.

Principles of Macroeconomics (MindTap Course List)

What is an attribute?

Pkg Acc Infor Systems MS VISIO CD

What is meant by catering theory, and how might it impact a firm's dividend policy?

Fundamentals of Financial Management (MindTap Course List)