Sandys Socks makes the worlds best socks Information for the

Sandy\'s Socks makes the world\'s best socks. Information for the last eight months follows Number of Socks ProducedTotal Cost Month January February March Apri May June July August 1,800 4,890 2,300 3,250 4,300 2,800 5,600 4,500 $9,000 15,648 10,350 11,375 13,845 11,200 16,410 4,400 Using the high-low method, calculate the total fixed cost per month and the variable cost per sock. (Round your \"Variable Cost per Unit\" answer to 3 decimal places.) Variable Cost per Unit Fixed Cost

Solution

Considering January and august

Variable cost per unit = (Difference in total cost) / (Difference in activity)

                                   = ($14,400 - $9,000) / (4,500 - 1,800)

                                   = $2

Fixed cost = $14,400 - (4,500*$2)

                  = $5,400

   = $14,400 -