43. Some of the records at Russell Company were destroyed in a fire, and the company is trying to reconstruct its cost function from the data available. It had used the high-low method to estimate its cost function last year, and the firm’s cost accountant remembered that fixed costs were estimated to total $4,000,000, but could not remember the variable cost estimate. The partial records remaining are as follows:

Estimate the firm’s cost function, and use it to predict total costs when sales are 20,000 units

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Year Units 2003 15,000 2004 22,000 2005 16,000 2006 29,000 $11,000,000 2007 30,000 $10,000,000 2008 24,000 $ 8,460,000