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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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