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Markson and Sons leases a copy machine with terms that include a fixed fee each month plus a charge for each copy made. Markson made 8,000 copies and paid a total of $980 in January. In April, they paid $760 for 6,000 copies. What is the variable cost per copy if Markson uses the high-low method to analyze costs? If required, round your answer to two decimal places.

Sagot :

The variable cost per copy if Markson uses the high-low method to analyze costs. will be $0.11.

How to calculate the cost?

It should be noted that the variable cost per unit will be calculated as:

= Difference in cost between high and low level activities / Difference in units

= (980 - 760)/(8000 - 6000)

= 220/2000

= 0.11

Therefore, the variable cost per copy if Markson uses the high-low method to analyze costs. will be $0.11.

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