Question
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
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 | ||
| 7,200 | $ 516,600 | ||
| 2,700 | 332,100 | ||
| 4,950 | 483,760 | ||
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 3,560 units of production. $
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Financial Accounting A User Perspective
Authors: Thomas Albright), Robert W. Ingram, Bruce Baldwin
6th International Edition
0324374658, 978-0324374650
