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 |
| 4,150 |
|
|
$264,300 |
|
| 5,890 |
|
|
383,040 |
|
| 2,090 |
|
|
246,240
|
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