Variable cost per unit 1000 800 125patient day Y 10000 125X Total maintenance

Variable cost per unit 1000 800 125patient day y

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determine the cost equation. Variable cost per unit = $1,000 800 = $1.25/patient-day Y = $10,000 + $1.25X Total maintenance cost Number of patient days
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5- THE HIGH-LOW METHOD Assume the following hours of maintenance work and the total maintenance costs for six months.
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THE HIGH-LOW METHOD The variable cost per hour of maintenance is equal to the change in cost divided by the change in hours. = $8.00/hour $2,400 300
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THE HIGH-LOW METHOD Total Fixed Cost = Total Cost – Total Variable Cost Total Fixed Cost = $9,800 – ($8/hour × 800 hours) Total Fixed Cost = $9,800 – $6,400 Total Fixed Cost = $3,400
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THE HIGH-LOW METHOD Y = $3,400 + $8.00X The Cost Equation for Maintenance
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QUICK CHECK Sales salaries and commissions are $10,000 when 80,000 units are sold, and $14,000 when 120,000 units are sold. Using the high-low method, what is the variable portion of sales salaries and commission? a. $0.08 per unit b. $0.10 per unit c. $0.12 per unit d. $0.125 per unit Sales salaries and commissions are $10,000 when 80,000 units are sold, and $14,000 when 120,000 units are sold. Using the high-low method, what is the variable portion of sales salaries and commission? a. $0.08 per unit b. $0.10 per unit c. $0.12 per unit d. $0.125 per unit
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QUICK CHECK Sales salaries and commissions are $10,000 when 80,000 units are sold, and $14,000 when 120,000 units are sold. Using the high-low method, what is the variable portion of sales salaries and commission? a. $0.08 per unit b. $0.10 per unit c. $0.12 per unit d. $0.125 per unit Sales salaries and commissions are $10,000 when 80,000 units are sold, and $14,000 when 120,000 units are sold. Using the high-low method, what is the variable portion of sales salaries and commission? a. $0.08 per unit b. $0.10 per unit c. $0.12 per unit d. $0.125 per unit $4,000 ÷ 40,000 units = $0.10 per unit Units Cost High level 120,000 14,000 $ Low level 80,000 10,000 Change 40,000 4,000 $
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QUICK CHECK Sales salaries and commissions are $10,000
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  • Fall '18
  • jane
  • Accounting, $1,000, $1.25, $4,000, $2,000, $2,400

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