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High-Low Method Tashiro Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the
High-Low Method
Tashiro Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows:
Units Produced | Total Costs | |||
2,030 | $250,880 | |||
630 | 161,280 | |||
1,280 | 164,860 |
a. Determine the variable cost per unit and the total fixed cost.
Variable cost (Round to two decimal places.) | $fill in the blank 1 | per unit |
Total fixed cost | $fill in the blank 2 |
b. Based on part (a), estimate the total cost for 960 units of production.
Total cost for 960 units: | $fill in the blank 3 |
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