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Company 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 8,100 $525,000 11,250 630,000 18,100 690,000 Please, calculate this questions a. Determine the variable cost per unit and the total fixed cost. b. Based on part (a), estimate the total cost for 15,000 units of production.

- October 10, 2022 - Edwin Tunner

Company 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
8,100 $525,000
11,250 630,000
18,100 690,000

Please, calculate this questions
a. Determine the variable cost per unit and the total fixed cost.
b. Based on part (a), estimate the total cost for 15,000 units of production.

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