Mitchum, Inc Using the High-Low Method, Determine:
(1) the Variable Expense Per

question 66

Short Answer

Mitchum, Inc. produced different amounts of product X each month as follows:
$$\begin{array} { | l | c | c | } \hline & \text { Units } & \text { Costs } \\\hline \text { April } & 370 & \$ 21,300 \\\hline \text { May } & 420 & \$ 22,050 \\\hline \text { June } & 350 & \$ 21,000 \\\hline \text { July } & 550 & \$ 24,000 \\\hline \text { August } & 450 & \$ 22,500 \\\hline\end{array}$$
Using the high-low method, determine:
(1) The variable expense per unit
(2) The fixed expense
(3) If Mitchum produced 450 units what would total expenses be?

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Definitions:

Automated Work Cell

A system comprised of robotic or mechanical units designed to perform a variety of tasks autonomously with minimal human intervention.

Centralized Computer

A single computing system or server that provides services, resources, or data to multiple users or client machines.

Little Penalty

Minor consequences or repercussions applied when objectives, targets, or deadlines are missed, often used to incentivize performance without imposing severe sanctions.

Time

The ongoing and irreversible sequence of events from the past through the present to the future.