high low method

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meibaker
meibaker Registered Posts: 481 Dedicated contributor 🦉
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?!

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  • Rinske
    Rinske 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.
  • meibaker
    meibaker 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!
  • meibaker
    meibaker Registered Posts: 481 Dedicated contributor 🦉
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    please ignore this question as i didn't read the question properly
  • jewels.p
    jewels.p Registered Posts: 1,774 Beyond epic contributor 🧙‍♂️
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    You havent lost the plot have you meibaker? :lol:

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

    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
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