You may use any of the Additional Resources listed in the drop-down menu above to help you complete this activity, but you are not required to do so. To access each resource, click on its name in the drop-down menu above.
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:
unit produced total costs
7500 600000
12500 725000
20000 800000
1.Determine the variable cost per unit and the fixed cost.
Variable cost: ___________
(Round to nearest dollar.) _____________ $ per unit
Total fixed cost: $ ____________.
2. Based on part 1, estimate the total cost for 10,000 units of production.
Total cost for 10,000 units: $ _____________.