Fremont- which uses the high-low method- reported total costs of $10-4.docx
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Solution B. $4.40 [(27,000 * 6.40) - (9,000 * 10.40)]/(27,000 - 9,000) = $4.40 .
Fremont- which uses the high-low method- reported total costs of $10-4.docx
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Solution B. $4.40 [(27,000 * 6.40) - (9,000 * 10.40)]/(27,000 - 9,000) = $4.40 .
![Fremont, which uses the high-low method, reported total costs of $10.40 per unit at its lowest
production level, 9,000 units. When production tripled to its highest level, the total cost per unit
dropped to $6.40. Fremont would estimate its variable cost per unit as
negative $0.000356
$4.40
$16.80
$6.40
Fremont, which uses the high-low method, reported total costs of $10.40 per unit at its lowest
production level, 9,000 units. When production tripled to its highest level, the total cost per unit
dropped to $6.40. Fremont would estimate its variable cost per unit as
negative $0.000356
$4.40
$16.80
$6.40
Solution
B. $4.40
[(27,000 * 6.40) - (9,000 * 10.40)]/(27,000 - 9,000) = $4.40](https://image.slidesharecdn.com/fremont-whichusesthehigh-lowmethod-reportedtotalcostsof10-4-230208185943-e876e890/75/fremont-which-uses-the-highlow-method-reported-total-costs-of-104docx-1-2048.jpg?cb=1675884575)
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Fremont- which uses the high-low method- reported total costs of $10-4.docx
- 1. Fremont, which uses the high-low method, reported total costs of $10.40 per unit at its lowest production level, 9,000 units. When production tripled to its highest level, the total cost per unit dropped to $6.40. Fremont would estimate its variable cost per unit as negative $0.000356 $4.40 $16.80 $6.40 Fremont, which uses the high-low method, reported total costs of $10.40 per unit at its lowest production level, 9,000 units. When production tripled to its highest level, the total cost per unit dropped to $6.40. Fremont would estimate its variable cost per unit as negative $0.000356 $4.40 $16.80 $6.40 Solution B. $4.40 [(27,000 * 6.40) - (9,000 * 10.40)]/(27,000 - 9,000) = $4.40