What was Carter Co.'s variable cost of E?
A) $140
B) $70
C) $64
D) $60

Name: What was Carter Co.'s variable cost of E? A) $140 B) $70 C) $64 D) $60
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Question

Quizplus · Accepted Answer

Using the high-low method, we can calculate the variable cost per unit (E) as follows:

Variable cost per unit = (Total cost at highest activity level - Total cost at lowest activity level) / (Highest activity level - Lowest activity level)

Variable cost per unit = ($2,832 - $1,920) / (48 - 30) = $64

Therefore, the variable cost of E for Carter Co. is $64.

What Was Carter Co.'s Variable Cost of E