The manufacturing costs of Mocha Industries for three months of the year are as follows: Total Cost Production April $86,650 2,500 Units May 89,350 3,500 June 93,589 5,070 a. Using the high-low method, determine the variable cost per unit. Round your answer to two decimal places. per unit b. Using the high-low method, determine the total fixed costs.
Macrohedging
Hedging or hedge accounting is a risk-mitigation technique used to protect the current financial position from potential losses. Hedging is often confused with speculating. The major difference between the two is that hedging does not involve guessing, whereas speculation is based on guessing the direction of movement of the underlying asset to book profits.
Finance Mathematics
The area of applied mathematics known as mathematical finance, also known as quantitative finance or financial mathematics is concerned with the mathematical modeling of financial markets. The application of mathematical methods to financial problems is known as financial mathematics. A financial market is a place where people can exchange low-cost financial securities and derivatives. Stocks and bonds, raw materials, and precious metals, both of which are regarded as commodities in the stock markets, are examples of securities. It uses probability, statistics, stochastic processes, and economic theory as methods.
What is the high low method?
Formula:
Variable cost per unit = ( High cost - low cost ) / ( Higher production units - lower production )
In Numerator low cost to be deducted from high cost and denominator lower production units to be reduced from higher production units
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