v2.cengagenow.com SP-Reeder-OL (Jan to May): Link to Cengepe CengageNow/2 1 Onin

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v2.cengagenow.com SP-Reeder-OL (Jan to May): Link to Cengepe CengageNow/2 1 Onine teaching and learning resource from Cengage L.+ The manufacturing cost of Mocha Industries for three months of the year are provided below: April May June Total Cost $63,100 80,740 100,900 Production 1,100 Units 1,800 2,600 Using the high-low method, determine the (a) variable cost per unit, and (b) the total fixed costs. Round your answers to two dedimal places. a. Variable cost per unit b. Total fixed costs per unit Previous Next All work saved. Submit Test for Grading

Explanation / Answer

total production cost high 2,600 100,900 low 1,100 63,100 Difference 1,500 37,800 Variable cost per unit = 37800/1500 25.2 total fixed cost (100900 - 2600*25.2) 35380 a. Variable cost per unit $25.20 per unit b. Total fixed costs 35,380

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