Company has estimated costs for the following monthly production levels:

Production volume (units) 100 200 300

Cost A $2,000 $4,000 $6,000

Cost B 600 900 1,200

Cost C 1,800 1,800 1,800

Cost D 1,200 2,400 3,600

Cost E 2,000 2,000 2,000

Cost F 2,400 3,600 4,800

Cost G 1,100 1,600 2,100

Cost H 1,500 1,500 1,500

Total manufacturing costs $12,600 $17,800 $23,000

Required:

a. Identify each cost as a variable, fixed, or mixed cost.

Cost A ,Cost B,Cost C,Cost D ,Cost E ,Cost F,Cost G,Cost H

b. Measure the following equation using the high-low method (use the total manufacturing costs and units from the first and third columns.)

Total manufacturing costs = a + b (units)