Question 2 (2 points) Given the following cost information, use the high -low me

Question

Question 2 (2 points) Given the following cost information, use the high -low method to calculate the variable cost component # of Calls 2,000 1,500 2,200 2,500 2,300 1,700 Total Cost $24,000 20,000 26,000 28,000 27,000 22,000 Round your answer to the nearest dollar. Do not enter a dollar sign, any commas or decimals. For example, if you get $4.63, enter 5 Save Question 3 (2 points) Given the following cost information, use the high -low method to calculate the fixed cost component # of Calls 2,000 1,500 2,200 2,500 2,300 1,700 Total Cost $24,000 20,000 26,000 28,000 27,000 22,000 Round your answer to the nearest dollar. Do not enter a dollar sign, any commas or decimals. For example, if you get $4,632.32, enter 4632 Save

Explanation / Answer

2 Variable cost = (28000-20000)/(2500-1500)=8 3 Fixed cost = 28000-(2500*8)= 8000 4 Total contribution margin=10000*(20-12)= 80000 5 Net income = 80000-75000 = 5000

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