Consider the following for Canada Corp (CC). CC operates in Canada and operates a retail store selling cell phones. When 1,200 phones are sold in a year the total cost per phone is $75 and when sales increases by 20% the total cost will decrease to $70.

1.Using the High/Low method, estimate the variable and fixed cost elements of the annual costs.

2 Please include the equation for the total costs.

3.If there were 1,150 phones sold, what would be the total cost and the cost per unit?