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The following information is available for a company's cost of sales over the last five months. Month Units sold Cost of sales January 400 $ 31,000 February 800 $ 37,000 March 1,600 $ 49,000 April 2,400 $ 61,000 Using the high-low method, the estimated variable cost of sales per unit sold is:

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Answer:

Cost of Sales $15 Per Unit

Explanation:

Using high and low method Variable cost of product can be find using the formula below

Variable cost per unit =  (total cost at high level - total cost at low level) / ( total units at high level - total Units at low level)

Variable cost Per Unit = ($61000 - $31000) / (2400 - 400) = $30000/2000

Variable cost Per Unit = $15 Per Unit

srastiuts023

Cost of Sales $15 Per Unit

Using high and low methods Variable cost of the product can be found using the formula below

Variable cost per unit =  (total cost at high level - total cost at low level) / ( total units at high level - total Units at low level)

Variable cost Per Unit = ($61000 - $31000) / (2400 - 400) = $30000/2000

Variable cost Per Unit = $15 Per Unit

What is the cost of sales for example?

Cost of sales = starting stock + Purchases – ending inventory. for instance, let's imagine that an enterprise has £15,000 of stock on hand at the beginning of the month. for the duration of the route of the month, the organization spent around £five,000 on raw substances, wages, and delivery.

Learn more about Stock at https://brainly.com/question/25818989

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