Cole is computing variable cost per unit using the high‐low method. The highest level of activity is 725 machine hours at a total cost of $1,900. The lowest level of activity is 225 machine hours at a total cost of $1,000. What is the variable cost per unit?

Variable cost per unit= $1.8

Explanation:

Giving the following information:

The highest level of activity is 725 machine hours at a total cost of $1,900. The lowest level of activity is 225 machine hours at a total cost of $1,000.

To calculate the unitary variable cost, we need to use the highlow method:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (1,900 - 1,000) / (725 - 225)

Variable cost per unit= $1.8

disadvantages of leasing a vehicle: no vehicle equity and mileage limitations

disadvantages of purchasing a vehicle: large down payment and vehicle depreciation

#plato4lyfe

y=mx+b is the right slope of velocity carry the 4 over