The manufacturing costs of Calico Industries for three months of the year are provided below:   Total Cost Production (units) April $121,400 278,500       May 80,800 166,100       June 109,600 237,400       Using the high-low method, the variable cost per unit and the total fixed costs are a.$3.60 per unit and $2,114 b.$0.65 per unit and $10,570 c.$0.36 per unit and $21,140 d.$6.48 per unit and $2,114

Marketing
20th Edition
ISBN:9780357033791
Author:Pride, William M
Publisher:Pride, William M
Chapter19: Pricing Concepts
Section: Chapter Questions
Problem 6DRQ
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The manufacturing costs of Calico Industries for three months of the year are provided below:

  Total Cost Production (units)
April $121,400 278,500      
May 80,800 166,100      
June 109,600 237,400      

Using the high-low method, the variable cost per unit and the total fixed costs are

a.$3.60 per unit and $2,114
b.$0.65 per unit and $10,570
c.$0.36 per unit and $21,140
d.$6.48 per unit and $2,114
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