Suppose that the cost of producing X units of a product in a manufacturing company is F + VX where F = Total fixed cost
Posted: Sun Jul 03, 2022 1:07 pm
Suppose that the cost of producing X units of a productin a manufacturing company is
F + VX where F = Total fixed cost and V = Variable costper unit. The actual cost of producing X units is Co and thisincreases to C, when the actual number of units increases to X1.Using the high-low method which formula below represents theestimated value of the unit variable cost, V?
A. (C1 – Co) / (X1 – Xo)
B. (X1 – Xo) / (C1 – Co)
C. (X1 – Xo) / (Co-C1)
D. (C1 – Co) / (Xo-X1)
F + VX where F = Total fixed cost and V = Variable costper unit. The actual cost of producing X units is Co and thisincreases to C, when the actual number of units increases to X1.Using the high-low method which formula below represents theestimated value of the unit variable cost, V?
A. (C1 – Co) / (X1 – Xo)
B. (X1 – Xo) / (C1 – Co)
C. (X1 – Xo) / (Co-C1)
D. (C1 – Co) / (Xo-X1)