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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.
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...
Estimating a cost function, high-low method?
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Reisen Travel offers helicopter service from suburban towns to john F. Kennedy Airport. Each of it's 10 helicopters makes between 1,000 and 2,000 round trips per year. The records indicate that a helicopter that has made 1,000 round trips has an average operating cost of $300, and one that has made... View more questions Search
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