Accounting · Cost Classification and High-Low Method
Using the high-low method for a company's past production data, management determined the cost structure. Identify the correct combination of the variable cost per unit and total fixed costs for Gemma Co. based on standard budget analysis assumptions.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Variable cost per unit is $2; Fixed costs are $12,000
- 2Variable cost per unit is $3; Fixed costs are $15,000✓
- 3Variable cost per unit is $3; Fixed costs are $14,000
- 4Variable cost per unit is $2; Fixed costs are $15,000
Correct answer
Variable cost per unit is $3; Fixed costs are $15,000
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