Part 1: For each of the six different costs (A, B, ..., F) given below, indicate whether it is a variable, fixed, or mixed cost with regard to machine hours. Use the high-low technique to estimate the variable cost per machine hour and the total fixed costs for each.

Cost	100 hours	125 hours
A	$1,000	$1,000
B	$3,000	$3,750
C	$14,200	$16,700
D	$8,000	$8,000
E	$6,500	$7,000
F	$5,000	$6,250

PART 2: If machine hours are constant per unit of finished product, which of the above costs (A, B, , F) would decrease on a cost per unit basis if the number of units made increased?

I need someone to answer these step-by-step, so that I may understand. The high-low method needs to be used for each one. I went through some practice exercises to try to figure this out, but they didnt help. My school doesnt have tutors available for this.

For Part 1, this is what Im thinking:

A Fixed, because it is the same.

B Variable, because $3750 is 25% more than $3000, but I really dont know.

C MixedI really dont know.

D Fixed, because it is the same

E MixedI really dont know.

F Variable, because $6250 is 25% more than $5000.

Part 2, I just dont understand at all, but I know that:

Variable cost per unit = difference in total costs divided by difference in production, but I dont know how to apply that here, and I dont know how to do the highest level and lowest level calculations.