In applying the high-low method what is the fixed cost? $\begin{array}{lcr}
\text { Month } & \text { Miles } & \text { Total Cost } \
\hline \text { January } & 80,000 & \$ 192,000 \
\text { February } & 50,000 & 160,000 \
\text { March } & 70,000 & 188,000 \
\text { April } & 90,000 & 260,000
\end{array}$

Question

Quizplus · Accepted Answer

Fixed cost is the cost that does not change with the level of activity. In this case, the fixed cost is $72,000, which is the cost incurred in February when the miles driven were the lowest.

In Applying the High-Low Method What Is the Fixed Cost