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Answer» VARIABLE and Fixed Component using High-Low Method: Variable Cost per hour = 52 L - 32 L ------------------- 8 L - 3 L = 20 L ------------- 5 L = 4 L per Hour Fixed Cost =TOTAL Cost(High or Low) - Variable Cost = 52 L - ( 8 L * 4 L) [here high components are taken] = 52 L - 32 L = 20 L Variable Cost = T.C - F.C = 52 - 20 = 32 L

Answer»

VARIABLE and Fixed Component using High-Low Method:

Variable Cost per hour = 52 L - 32 L

-------------------

8 L - 3 L

= 20 L

-------------

5 L

= 4 L per Hour

Fixed Cost =TOTAL Cost(High or Low) - Variable Cost

= 52 L - ( 8 L * 4 L) [here high components are taken]

= 52 L - 32 L

= 20 L

Variable Cost = T.C - F.C

= 52 - 20

= 32 L

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