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High-low method, contribution margin per case, fixed costs, break-even
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Hi everyone, Royal Essentials, Inc. begin operations on January 1, 2008. The company produces a hand and body lotion in an eight-ounce bottle called Eternal Beauty. The lotion is sold wholesale in 12-bottle cases for $80 per case. There is a selling commission of $16 per case. The January...
High low method to calculate fixed cost
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Suppose you have two levels of activities and costs as follows: Highest level of activity is 10,000 lowest is 6,000. Highest cost is 35,000 while lowest cost is 27,000. Use the high low method to calculate the fixed cost.
Recompute the fixed costs, variable cost and the BEP using the high low method.
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Info is : Month Meals Served Total Costs July 3,500 $20,500 August 4,000 22,600 September 4,200 23,350 October 4,600 24,500 November 4,700 25,000 December 4,900 26,000 I have gotten the fixed costs as $4.29.
How to use high/low method, to calculate the amount of projected monthly fixed cost
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Production in 2005 for Dingy Daytona Dune Buggies was at its highest point in the month of July when 972 units were produced at a cost of $18,448. The low point in production was in January when only 155 units were produced at a cost of $10,667. The company is preparing a budget for 2006 and needs... View more questions Search
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