Below are the processing costs of Well Inc. observed for producing a type of vitamin C tablets in bottles over the last 6 months:

Month

Units of bottles Produced

Processing Cost

1

9500

$34,000

2

13,000

$42,000

3

17,000

$49,000

4

7,500

$28,000

5

11,000

$37,000

6

8,500

$30,000

a. Use the high low method to determine the variable cost per unit and fixed cost per month. Express your results in the form of a linear equation

y = a + bx. (15 marks)

b. Predict the total processing cost if 22,000 units are produced. (10 marks)