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Daisy Bakes Order Co. applied the high-low method of cost estimation to customer order data for the first 4 months

Daisy Bakes Order Co. applied the high-low method of cost estimation to customer order data for the first 4 months

of the year.

What is the estimated variable order-filling cost component per order?

Month                                      Number of Orders                            Costs

January                                                1,200                                            $3,120

February                                            1,300                                            $3,185

March                                                   1,800                                            $4,320

April                                                         1,700                                            $3,895

a) $2.00

b)$2.42

c) 2.48

d) $2.50

 
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