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Edit View Kyle Maisanc Acct 2270 V0852 2018WI (B) Time Remain Test: Week #2 Chap

ID: 2548267 • Letter: E

Question

Edit View Kyle Maisanc Acct 2270 V0852 2018WI (B) Time Remain Test: Week #2 Chapter #3 Test yL 5 of 12 (0 complete) This Question: 1 pt Presented below is the production data for the first sik months of the year showing the mixed costs incurred by Eunice Company. Cost Ta suary $7,500 Month February 13,000 11,500 11,700 13,500 11,850 4,000 7,500 9,000 11,500 12,000 6,000 March June Eunice Company uses the high-low method to analyze mixed costs. The variable cost per unit is O A $0.75 , $131 OC. S1.25 O D. $0.625 Cick to select your answer This course ct 227O VOB52 2is based on Copyight 2018 Pearson Education 6 8

Explanation / Answer

Variable cost per unit = (highest level of activity - lowest level of activity ) / number of units of highest level - number of units of lowest level.

= ($13500 - $7500) / (12000 - 4000)

= $6000 / 8000

= $0.75.

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