Using the high-low method, compute the variable element of repair cost per hour of operation for Universal's equipment:

Name: Using the high-low method, compute the variable element of repair cost per hour of operation for Universal's equipment:
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Question

Quizplus · Accepted Answer

The high-low method calculates the variable cost per unit by taking the difference in costs between the highest and lowest activity levels and dividing it by the difference in activity levels. Here, the variable element of repair cost per hour is $0.30.

Using the High-Low Method, Compute the Variable Element of Repair