31.If a firm has relatively high fixed costs compared with variable costs we can say

31.If a firm has relatively high fixed costs compared with variable costs we can say the firm
a.
has high operating gearing
b.
has a low margin of safety
c.
has a high margin of safety
d.
is inefficient
The following information applies to questions 32 and 33
Klopi Limited manufactures toasters with a selling price of $179. The following financial information was obtained on manufacturing costs for the last six months:
Month
Units sold
Manufacturing costs
($ thousands)
May 2020
240
40.2
June 2020
200
36.8
July 2020
240
42.2
August 2020
280
44.3
September 2020
360
54.4
October 2020
320
51.3

Question 32 (2 marks):
Estimate the variable manufacturing cost per toaster, based on the high-low method.
Question 33 (2 marks):
Estimate the fixed manufacturing cost per month, based on the high-low method.