Use the high-low point method to determine variable cost per unit:

Question

Quizplus · Accepted Answer

The high-low point method involves taking the highest and lowest activity levels and using the difference in costs to determine the variable cost per unit. 
Using the data provided in the image, the highest activity level is 4,400 units with a total cost of $5,720 and the lowest activity level is 2,200 units with a total cost of $4,480. 
The difference in total costs is $1,240 ($5,720 - $4,480). 
The difference in activity levels is 2,200 units (4,400 - 2,200). 
Therefore, the variable cost per unit is $1,240 / 2,200 units = $0.80 per unit.

Use the High-Low Point Method to Determine Variable Cost Per