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Problem - High-low method - The manufacturing costs of Fuld Industries for three months of the year are provided below.
Total Costs
Production
January
$175,000
7,500 units
February
390,000
20,000
March
490,000
25,000
Required - Using the high-low method,
(a) Determine the variable cost per unit.
(b) Determine the total fixed cost.
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