What Is the Formula to Calculate the Variable Rate of a Mixed

question 96

Multiple Choice

What is the formula to calculate the variable rate of a mixed cost when using the high-low method?

• A)total cost at high point ? (variable rate × output at high point)
• B)total cost at high point ? (variable rate × output at low point)
• C) \(\frac{\text {high point output - low point output }}{\text { high point cost - low point cost}}\)
• D) \(\frac{\text { high point cost }- \text { low point cost }}{\text { high point output - low point output }}\)

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