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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
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 | ||
100,000 | $1,800,000 | ||
180,000 | 2,800,000 | ||
300,000 | 4,300,000 |
a. Determine the variable cost per unit and the fixed cost. Round variable cost per unit to the nearest cent.
Variable cost per unit | $fill in the blank 1 |
Fixed cost | $fill in the blank 2 |
b. Based on part (a), estimate the total cost for 260,000 units of production. $fill in the blank 3
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