A soft drink bottler incurred the following plant utility costs: 1,800 units bottled with utility costs of $5,750,and 1,500 units bottled with utility costs of $5,200.What is the variable cost per unit bottled (Use the High-low method.Round to the nearest cent. )

Question

Quizplus · Accepted Answer

The variable cost per unit is calculated using the high-low method by taking the difference in costs divided by the difference in units: ($5,750 - $5,200) / (1,800 - 1,500) = $550 / 300 = $1.83 per unit.

A Soft Drink Bottler Incurred the Following Plant Utility Costs