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Calculation of Variable cost per unit.
Using the high-low method, what is the variable cost per unit?
The Nelson Company experienced the following costs in 2007:
Direct materials
$2.25/unit
Direct labor
$4.10/unit
Variable manufacturing overhead
$.75/unit
Variable selling
$3.00/unit
Fixed manufacturing overhead
$60,000
Fixed selling
$35,000
Fixed administrative
$20,000
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