The Vern Corporation has assembled the following data pertaining to certain costs that cannot be easily identified as either fixed or variable. Vern Corporation has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation.

-The variable cost per unit is
A) $0.38.
B) $0.46.
C) $2.60.
D) $2.16.

Question

The Vern Corporation has assembled the following data pertaining to certain costs that cannot be easily identified as either fixed or variable. Vern Corporation has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation.
 
-The variable cost per unit is
A) $0.38. 
B) $0.46. 
C) $2.60. 
D) $2.16.

Quizplus · Accepted Answer

The variable cost per unit is $2.60, as it is the only option that represents a plausible variable cost per unit in a typical cost structure.

The Vern Corporation Has Assembled the Following Data Pertaining to Certain