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akeAssignment/takeAssig OW2| Online te...X ? & Preview | Auto Clip | e Pnnt Clip Clip List Search- S? Share | More » Sh.. TripAdvisor High-Low Method The manufacturing costs of Ackerman Industries for the first three months of the year follow Total Costs January$1,900,000 February2,250,000 2,400,000 Units Produced 20,000 units 27,000 30,000 March Using the high-low method, determine (a) the variable cost per unit and (b) the total foxed cost. Round all answers to the nearest whole do a. Variable cost per unit b. Total fixed cost Check My Work

Explanation / Answer

Total costs Units High level 2400000 30000 Low level 1900000 20000 a Variable cost per unit = (2400000-1900000)/(30000-20000)= $50 b Total fixed cost = 2400000-(30000*50)= $900000

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