Mendoza Company's highest point of total cost was $80,000 in June.Their point of lowest cost was $65,000 in January.The company makes a single product.Production volume in June and January were 16,000 and 8,000 units,respectively.What is the fixed cost per month?

Question

Quizplus · Accepted Answer

C) Variable cost per unit = Change in total cost / Change in volume of activity
Variable cost per unit = (Highest cost - Lowest cost) / (Highest volume - Lowest volume)
 11ea8870_3610_3d69_bb89_99b15f0c2c46_TB5025_00 Total costs for June
Total variable costs for June
 11ea8870_3610_3d6a_bb89_61b5959cf5be_TB5025_00

Mendoza Company's Highest Point of Total Cost Was $80,000 in June.Their