Anthony Company's highest point of total cost was $75,000 in June.Their point of lowest cost was $50,000 in December.The company makes a single product.Production volume in June and December were 13,000 and 8000 units,respectively.What is the fixed cost per month?

Question

Quizplus · Accepted Answer

The fixed cost can be calculated using the high-low method. The variable cost per unit is ($75,000 - $50,000) / (13,000 - 8,000) = $5. The total variable cost for June is 13,000 units * $5 = $65,000. Therefore, the fixed cost is $75,000 - $65,000 = $10,000.

Anthony Company's Highest Point of Total Cost Was $75,000 in June.Their