Train Express Co., which manufactures locomotive engines, is attempting to predict its maintenance costs more accurately. Maintenance costs are a mixed cost. Maintenance costs and machine hours for the first four months of the year are as follows:
Required: Using the high-low method, calculate unit variable cost and monthly fixed costs.

Question

Train Express Co., which manufactures locomotive engines, is attempting to predict its maintenance costs more accurately. Maintenance costs are a mixed cost. Maintenance costs and machine hours for the first four months of the year are as follows:
  Required: Using the high-low method, calculate unit variable cost and monthly fixed costs.

Quizplus · Accepted Answer

The Answer of Train Express Co., which manufactures locomotive engines, is attempting to predict its maintenance costs more accurately. Maintenance costs are a mixed cost. Maintenance costs and machine hours for the first four months of the year are as follows:
  Required: Using the high-low method, calculate unit variable cost and monthly fixed costs.