high low method

meibaker

i think i am lost my mind now, can't even apply high low method!
please someone help
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?!

Rinske

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.

meibaker

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!

meibaker

please ignore this question as i didn't read the question properly

jewels.p

You havent lost the plot have you meibaker?

At this stage everything merges into one and we forget everything dont you think!

Newbie

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I find that generally my workings are technically correct but im either misreading the question or making silly mistakes, must be the stress coming up to the exams