Determine the variable cost per unit and the total fixed, Accounting Basics

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Determine the variable cost per unit and the total fixed

Problem

Shatner Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows:

Units Produced   Total Costs
1,940                 $114,260
3,200               128,800
1,200                 82,800

a. Determine the variable cost per unit and the total fixed cost.

b. Based on part (a), estimate the total cost for 1,580 units of production.

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Accounting Basics: Determine the variable cost per unit and the total fixed

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Accounting Basics: Determine the variable cost per unit and the total fixed

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