Jenkins Frames Company, which manufactures ornate frames for original art work, began operations in January 2018. Bruce Preston, the owner, asks for your assistance. He believes that he needs to better understand the cost of the frames for pricing purposes. You have collected the following data concerning actual production over the past year:

Using the high-low method, compute the total cost equation for the preceding data.

1. Compute the variable cost per unit.

2. Compute total fixed costs.

4. Using the high-low method, estimate the total cost to produce 4,000 units.

Month January February March April May June Number of Frames Total Cost 1,600 $42.000 7,200 $65.000 3,920 $59.000 1.200 $37.200 3,200 $58,000 2,600 $54,000 2,200 $51,200 3,600 $62,000 4,560 $64,000 5,880 $63,000 6,560 $64,000 800 $33,000 July August September October November December