Markson and Sons leases a copy machine with terms that include a fixed fee each month of $313 plus a charge for each copy made. The company uses the high-low method to analyze costs. If Markson paid a variable cost of $0.15, how much would Markson pay if it made 7,814 copies? Round to the nearest penny, two decimals.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Markson and Sons leases a copy machine with terms that include a fixed fee each month of $313 plus a charge for each copy made. The company uses the high-low method to analyze costs. If Markson paid a variable cost of $0.15, how much would Markson pay if it made 7,814 copies? Round to the nearest penny, two decimals.

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The high-low method is used to differentiate the mixed cost. The mixed cost is the combination of fixed cost and variable cost.  The variable cost per unit can be calculated by dividing the change in cost by the change in units and the fixed cost can be calculated by deducting the variable cost from the total cost.

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