Alden Co.s monthly unit sales and total cost data for its operating activities of the past year follow. Management wants to use these data to predict future fixed and variable costs.

Month

Units Sold

Total Cost

Month

Units Sold

Total Cost

1

318,000

$

155,500

7

362,000

$

292,624

2

163,000

99,250

8

268,000

149,750

3

263,000

203,600

9

76,400

67,000

4

203,000

98,000

10

148,000

128,625

5

288,000

199,500

11

92,000

92,000

6

188,000

110,000

12

98,000

83,650

Estimate both the variable costs per unit and the total monthly fixed costs using the high-low method. (Do not round intermediate calculations.)

High-Low method - Calculation of Variable Cost per Sales Dollar
Change in cost	Cost at high point minus cost at low point			$225,624	Variable cost per sales dollar =	$0.79
Change in volume	Volume at high point minus volume at low point			$285,600
High-Low method - Calculation of Fixed Costs
Total cost at the high point		$292,624.00
Variable costs at the high point:
Volume at the high point:	362,000	units sold
Variable cost per sales dollar	$0.79
Total variable costs at the high point		285,980.00
Total fixed costs
Total cost at the low point
Variable costs at the low point:
Volume at the low point:
Variable cost per sales dollar
Total variable costs at the low point
Total fixed costs

Predict future total costs when sales volume is (a) 376,000 units and (b) 416,000 units.

	Predictions
Sales (units)	376,000	416,000
Total costs	$0	$0