Bruno company accumulates the following data concerning a mixed cost, using miles as the activity level. miles driven total cost miles driven total cost january 7,995 $14,200 march 8,500 $15,011 february 7,495 13,503 april 8,200 14,490 compute the variable cost per mile using the high-low method. (round variable cost per mile to 2 decimal places e. g. 1.25.) variable cost per mile $ compute the fixed cost elements using the high-low method. fixed costs $

The variable cost per mile is $1.50

The fixed cost element  is $2,261

Explanation:

The computation of the fixed cost and the variable cost per hour by using high low method is shown below:

Variable cost per hour = (High Total cost - low total cost) ÷ (High miles driven - low miles driven)

= ($15,011 - $13,503) ÷ (8,500 -  7,495)

= $1,508 ÷ 1,005 hours

= $1.50

Now the fixed cost equal to

= High operating cost - (High miles driven × Variable cost per hour)

= $15,011 - (8,500 × $1.50)

= $15,011 - $12,750

= $2,261

answer; the above statement/question is ( true);

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