If only mixed cost data is available, the high-low cost estimation model is used to separate the fixed cost from the variable cost. This approach is frequently used by businesses to create cost models for cost forecasting.
To begin, we calculate the variable cost as follows: Variable Cost = Total Variable Costs x Total Number of Units.
Calculate all of your production costs first. Be clear about the costs that are fixed and the costs that are variable. Variable costs are subtracted from the total cost of production and multiplied by the number of units produced. Your total fixed cost will be shown to you by this.
To learn more about variable cost here
https://brainly.com/question/29767642
#SPJ1
