Calculating Variable and Fixed costs given only numbers produced and total cost?

How do I figure this out if I don't have price per hamburger?





In a slow year, Deutsche Burgers will produce 2 million hamburgers at a total cost of $3.5 million. In a good year, it can produce 4 million hamburgers at a total cost of $4.5 million. What are the fixed and variable costs of hamburger production?Calculating Variable and Fixed costs given only numbers produced and total cost?
This is when you use the HIGH LOW method.





Qty 4m = TC $4.5m


Qty 2m = TC $3.5m


----------------------------- --


Qty 2m = TC $1.0m





VC per unit = $1.0m / 2m = $0.50





Put this into any of the Qty top get the FC, Qty 4m --%26gt; TC = FC + VC


$4.5m = FC + (4m x $0.50)


FC = $2.5m





There you go.





Cheers...