High-Low Method Calculator

Here is a free online High-Low Method calculator to calculate the variable cost per unit, fixed cost and cost volume with ease and simplicity based on the given high and low, cost and unit values respectively.

Calculate Variable Cost Per Unit, Fixed Cost, Volume

Here is a free online High-Low Method calculator to calculate the variable cost per unit, fixed cost and cost volume with ease and simplicity based on the given high and low, cost and unit values respectively.

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Splitting Mixed costs into fixed and variable costs Formula: Given below is the three separate formulae for calculating the variable cost per unit, total fixed cost and cost volume based on the High-Low Method. This method takes the highest level of activity and the lowest level of activity and compares the total cost at each level of activity.
1. Variable cost per unit is the difference between high cost and low cost divided by the difference between high unit and low unit.
2. Cost volume is the sum of total fixed cost and product of variable cost per unit and unit cost.

Formula:

b = (Y2 - Y1) / (X2 - X1) T = Y2 - (b × X2) = Y1 - (b × X1) y = T + (b × X) Where, b = Variable Cost per Unit Y2 = High Cost Y1 = Low Cost X2 = High Unit X1 = Low Unit T = Total Fixed Cost y = Cost Volume

In accounting, the splitting of mixed costs into fixed and variable costs can be calculated using the high-low method. Mixed cost can be split into fixed and other variable components. In this high-low method calculator, enter the high and low cost, high and low to calculate the variable cost per unit, fixed cost and volume.

High-Low Method: High-Low method is a managerial accounting technique used to split a mixed cost into its fixed and variable components. This method determines the fixed and variable elements of historical costs which are partially fixed and partially variable. This method is used in accounting that involves the comparing of total cost of highest and lowest level of activity.

Also, to make your calculations easier and simpler you can try this online High-Low method calculator designed based on the splitting mixed costs into fixed and variable costs formula.

Example

Given :
High Cost : 200
Low Cost : 100
Low Unit : 20
High Unit : 50

Solution :
Variable Cost per Unit = (200 - 100) / (50 - 20)= 100 / 30
= 3.33333
Total Fixed Cost=200 - (3.33 × 50) = 100 - (50 × 20)
=33.33350
Cost Volume = 33.33 + (3.33 × X)
=33.33350+3.33333x

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