High Low Method To Calculate Mixed Cost

The high-low method is a simple and effective way to calculate mixed costs, which are a combination of fixed and variable costs. Understanding mixed costs is crucial for making informed business decisions.

1. Enter the fixed cost.
2. Enter the variable cost per unit.
3. Enter the number of units.
4. Click ‘Calculate’.

The high-low method uses the following formula to calculate mixed cost:

Mixed Cost = Fixed Cost + (Variable Cost per Unit * Number of Units)

Comparison of High-Low Method with Other Methods

Method	Fixed Cost	Variable Cost	Mixed Cost

• Always review your fixed and variable costs regularly to ensure accuracy.
• Consider using other cost calculation methods for comparison.

What are fixed costs?

Fixed costs are expenses that must be paid regardless of the level of production.

Bureau of Labor Statistics – National Center for Financial Education