Estimate fixed and variable costs using the high-low method.

Activity Levels	Total Costs ($)
Low Activity Level	$20,000
High Activity Level	$40,000
Number of Units Produced	4,000 units

Requirements:

Calculate the variable cost per unit using the high-low method.

Determine the fixed cost component based on the high-low method.

Discuss how changes in activity levels affect total costs and cost per unit.