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    trouble4me's Avatar
    trouble4me Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Dec 1, 2013, 05:24 PM
    How do I recompute fixed costa using the high-low method
    Months meals total cost
    July 3500 20,500
    August 4000 22,600
    September 4200 23,350
    October 4600 24,500
    November 4700 25,000
    December 4900 26,000
    recomputed fixed cost, variable costs, and BEP using the information
    rehmanvohra's Avatar
    rehmanvohra Posts: 739, Reputation: 27
    Senior Member
    		  
    #2

    Dec 3, 2013, 09:37 AM
    High December 4900 26,000
    Low July 3500 20,500
    Difference 1400 5500
    Variable rate 3.92856 per meal

    Total costs 26000
    Less variable 4900 x 3.92856 = 19250
    Fixed costs 6750

    BEP can not be determined without sales revenue and contribution margin.
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