#41 Question 41 Corns Co. accumulates the following data concerning a mixed cost, using miles as the activity level. Compute the variable and fixed cost elements using the high-low method. (Round variable cost to 2 decimal places, e.g. 15.25.) Solution Segregation of mixed cost into fixed cost and variable cost Variable cost per mile = Total mixed cost at highest mile - Total mixed cost at lowest mile/ Highest Mile - Lowest Mile = 17000-12500/10000-7000 = 4500/3000 i.e 1.50 per mile Fixed Cost = Total mixed cost at 10000 mile - Total variable cost at 10000 mile = 17000 - (10000*1.50) = 17000-15000 i.e 2000.