31.If a firm has relatively high fixed costs compared with variable costs we can say the firm
has high operating gearing
has a low margin of safety
has a high margin of safety
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:
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.