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High-Low Method Liberty Inc. has decided to use the high-low method to estimate costs. The data for various levels of production are as follows: Units

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High-Low Method Liberty Inc. has decided to use the high-low method to estimate costs. The data for various levels of production are as follows: Units Produced Total Costs 2,680 $ 132,770 1,430 126,720 3,630 197,120 a. Determine the variable cost per unit and the fixed cost. Variable cost per unit Fixed cost b. Based on part (a), estimate the total cost for 1,820 units of production. Break-Even Sales Currently, the unit selling price of a product is $230, the unit variable cost is $190, and the total fixed costs are $504,000. A proposal is being evaluated to increase the unit selling price to $260. a. Compute the current break-even sales (units). units b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant. units

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