Duradyne, Inc.has total costs of $18,000 when 2,000 units are produced and $26,000 when 5,200 units are produced.During March, 4,000 units were produced and sold for $8 each.If the high-low method is used, how much is the variable cost per unit?

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Quizplus · Accepted Answer

Variable cost per unit = (Total cost at high volume - Total cost at low volume) / (High volume - Low volume)= ($26,000 - $18,000) / (5,200 - 2,000)= $8,000 / 3,200= $2.50