• Classic Auto Restorations specializes in restoring vintage cars and seeks to refine cost estimates for better client quotations.
• Data Available:
  • Project A: Total Costs: $120,000, Hours Worked: 1,500
  • Project B: Total Costs: $180,000, Hours Worked: 2,250
• Expected Deliverables:
  • Apply the High-Low Method to find the variable cost per work hour and fixed costs.
  • Establish a cost formula.
  • Calculate the expected total costs for a project requiring 3,000 work hours.
  • Evaluate the impact of project duration on cost efficiency and pricing strategy.