The high low method, The high-low method

The high low method

Reference no: EM13545211

Alex Company's high and low levels of activity last year were 10,000 units in May and 35,000 units in July. Machine maintenance costs corresponding to these levels were AED 90,000 in May and AED 190,000 in July. The maximum level of activity for any month was 60,000 units.

Using the high-low method, determine the following:
1) variable cost per unit (b)
2) fixed cost (a)
3) cost function of Y
4) Maintenance cost for an activity level of 50,000 units a month

Reference no: EM13545211

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