Assignment:
High-Low Method
Q: 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 |
| 6,090 |
|
|
$235,200 |
|
| 3,590 |
|
|
200,930 |
|
| 1,890 |
|
|
151,200 |
|
a. Determine the variable cost per unit and the total fixed cost.
b. Based on part (a), estimate the total cost for 2,870 units of production.