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Here is the problem: The local franchise of Vogorio Sandwich Company assigns you the task of estimating total maintenance cost on its delivery vehicles. This

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Here is the problem: The local franchise of Vogorio Sandwich Company assigns you the task of estimating total maintenance cost on its delivery vehicles. This cost is a mixed cost. You are given the following data from past months: Month Units Costs 4,400 January February March April May December 5,000 4.100 5.300 $7,000 $7,600 $6.900 $8,000 $7.900 $10,400 5,000 8.600 Required: A. Using the high-low method, determine the total amount of fixed costs and the amount of variable cost per unit. B. If the number of units turned out to be 9,000 for a given month, what would be the fixed portion, the variable portion, and the total cost to be expected? A B D 5 6 7 High total cost in dollars Low total cost in dollars Difference 8 9 10 11 High number of units Low number of units Difference 12 Variable cost per unit 13 14 15 16 17 Calculation of fixed cost: Total cost for chosen number of units Variable cost at chosen number of units Fixed cost 18 19 20 21 22 23 24 25 B 26 27 Variable cost at 9,000 units Fixed cost from above Total cost 28 29 30

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