Cost Management: A Strategic Emphasis 7th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins

Exercise 26

Peppers Lockdown produces keys for homes and cars. As Peppers planned for next year's production, the company decided to implement a high-low system to forecast future costs. With total production of 2,500,000 keys at a total cost of $10,000 in 2015, and total production of 3,000,000 keys at a total cost of $20,000 in 2016, what is the variable cost per key