Tic Tac Toe ple made the following observations of supply costs at different levels of production output:

Required

(a) Use the high-low method to estimate the fixed costs and variable cost per unit from the above data.

(b) Express the level of confidence you have in your estimate derived in part

(a) of this question.

Transcribed Image Text:

Supply costs Output (units) 4,800 2,100 5,300 2,900 5,900 3,800 4,900 2,400 4,200 1,900 4,500 2,000 5,600 3,100 6,300 4,200 6,000 4,000 6,800 4,500 5,800 3,600 5,200 2,700