Question

Carla Vista Corp. has collected the following data concerning its maintenance costs for the past 6...

Carla Vista Corp. has collected the following data concerning its maintenance costs for the past 6 months.

Units Produced

Total Cost

July 20,180 $44,058
August 35,872 53,808
September 40,356 61,655
October 24,662 46,334
November 44,840 83,514
December 42,598

69,502

Compute the fixed cost elements using the high-low method.

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Answer #1

Variable cost - 1.6 per unit

Fixed cost - $11,770

Working attached below

Please refer

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