Use the High-Low Method to Separate Mixed Costs into Variable and Fixed Components

 Posted on Posted on: 02.07.2020 Modified on: 11.01.2022Categories Bookkeeping 101  Leave a comment on Use the High-Low Method to Separate Mixed Costs into Variable and Fixed Components

If the bicycle company produced 10 bikes, its total costs would be $1,000 fixed plus $2,000 variable equals $3,000, or $300 per unit. Although fixed costs do not vary with changes in production or sales volume, they may change over time….