To calculate costs using the high-low method, here are the steps to follow: The formula for variable cost per unit is: Variable Cost = (Highest Activity Cost – Lowest Activity Cost) ÷ (Highest ...

Fixed costs and variable costs affect the marginal cost ... The key to optimizing manufacturing costs is to find that point or level as quickly as possible. Marginal cost of production includes ...

courtneyk / Getty Images Fixed costs are expenses that remain the same no matter how much a company produces, such as rent, property tax, insurance, and depreciation. Variable costs are any ...