High-Low Method

The manufacturing costs of Ackerman Industries for the first three months of the year follow:

Total Costs Units Produced

January $1,900,000 20,000 units

February 2,250,000 27,000

March 2,400,000 30,000

Using the high-low method, determine (a) thevariable costper unit and (b) the totalfixed cost. Round all answers to the nearest whole dollar.

a.Variable cost per unit$fill in the blank 1

b.Total fixed cost$fill in the blank 2