# high low method

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Registered Posts: 481 Dedicated contributor 🦉
i think i am lost my mind now, can't even apply high low method!
variable costs of energy per unit
20,000..............25,000..................23,000
£80,000............£92,500................£120,000
what i did is 120,000-80,000/23,000-20,000
but the answers is 2.5 per unit, where did i go wrong?!

• Registered Posts: 2,453 Beyond epic contributor 🧙‍♂️
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You got the method right, but in this case there seems to be an issue on the question.

23,000 units is £ 120,000 while 25,000 units is only £ 92,500.

If you recalculate it with the price for the 20,000 and the 25,000 units, you will see that the answer is 2.5 per unit.
• Registered Posts: 481 Dedicated contributor 🦉
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Rinske wrote: »
You got the method right, but in this case there seems to be an issue on the question.

23,000 units is £ 120,000 while 25,000 units is only £ 92,500.

If you recalculate it with the price for the 20,000 and the 25,000 units, you will see that the answer is 2.5 per unit.

this question is pass exam june 2010 1.2!
even though i use the correct answers i've got 8 per unit??!!
120,000-80,000/25,000-20,000=8 per unit!
• Registered Posts: 481 Dedicated contributor 🦉
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• Registered Posts: 1,774 Beyond epic contributor 🧙‍♂️
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You havent lost the plot have you meibaker?

At this stage everything merges into one and we forget everything dont you think!
• Registered Posts: 229 Dedicated contributor 🦉
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