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
5- THE HIGH-LOW METHOD Assume the following hours of maintenance work and the total maintenance costs for six months.
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
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
THE HIGH-LOW METHOD Y = \$3,400 + \$8.00X The Cost Equation for Maintenance
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
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 \$
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