[gurleenmalhotra]

66. First attempt.

[gurleenmalhotra]

Thank you for your help.

[gurleenmalhotra]

Thank you so much for your help.

[gurleenmalhotra]

I didn’t understand one thing. If I use the High Low method formula- Variable Cost Per Unit = (Highest activity cost – Lowest activity cost) / (Highest activity units – Lowest activity units), then I would do $6.56 (highest) – $5.44 (lowest)/ $6.8 – $5.2. Why did we subtract $0.4M from the numerator?

[gurleenmalhotra]

Apologies for just typing out the question and not asking about the doubt. This will not happen in the future. And thank you for providing the full solution.

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