1. Assume a Co. has the following available information about costs:

YearActivity(units) TotalOperatingCosts

2010 139,000$364,000

2011 171,000$428,000

Use the high low method to develop determine the variable cost per unit.

2.Calculate the total estimated cost for a company that produces 5,000 units of a product with the following cost behavior information:

Fixed costs are $20,000

Variable cost per unit is $3 per unit produced