In Applying the High-Low Method What Is the Unit Variable

question 112

Multiple Choice

In applying the high-low method what is the unit variable cost? $\begin{array}{lcr}\text { Month } & \text { Miles } & \text { Total Cost } \\\hline \text { January } & 80,000 & \$ 192,000 \\\text { February } & 50,000 & 160,000 \\\text { March } & 70,000 & 188,000 \\\text { April } & 90,000 & 260,000\end{array}$

• A)$2.88
• B)$2.50
• C)$3.20
• D)Cannot be determined from the information given.

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Definitions:

Debt Principal

The original amount of money borrowed or the remaining balance of a loan, exclusive of interest.

Double-Entry Bookkeeping

An accounting system where every transaction affects at least two accounts to maintain a balanced set of financial records.

Cash Balance

The total amount of cash or cash equivalents that a company or individual has available at any given point in time.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities.