High-Low Variable Cost Formula - Inventory Calculators

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

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