ABCDEFGHIJKLMNOPQRSTUVWXYZ
1
High Low Method of Determining Fixed and Variable Cost
2
*Replace this fictitious data with your data
Month# of Orders DeliveredLabor Costs
3
Month# of Orders DeliveredLabor CostsHighest Month170$15,000
4
Jan100$9,000Lowest Month70$7,500
5
Feb70$7,500
6
Mar150$14,000
7
Apr120$8,500Highest # of orders delivered in one month170
8
May130$12,500
9
Jun110$9,000Enter the lowest # of rrders delivered in one month70
10
Jul90$7,500
11
Aug140$12,000Enter the highest labor costs in a month$15,000
12
Sep160$10,500
13
Oct170$15,000Enter the lowest labor costs in a month $7,500
14
Nov115$8,200
15
Dec80$7,000Variable Costs Per Unit = $75.00
16
Total Fixed Costs* = $2,250
17
18
*To determine fixed costs, take the total costs at the high level and deduct the variable cost element
19
20
21
Break Even Analysis
22
Fixed
Costs
Average
Price of Labor / Order
Variable
Costs		Contribution
Margin		Break Even Orders Per YearPer Month
23
$2,250$100$75$25908
24
Input the price you charge
Is this reasonable?
25
If too high, increase price of labor.
26
If really low, decrease price of labor.
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100