Question

solve this question quickly

Answer 1

Variable and Fixed Component using High-Low Method:

Variable Cost per hour = 52 L - 32 L

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8 L - 3 L

= 20 L

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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