Period

Units Sold

Cost of Sales

1

-

$ 2,500.00

2

400

$ 3,100.00

3

800

$ 3,700.00

4

1,200

$ 4,300.00

5

1,600

$ 4,900.00

6

2,000

$ 5,500.00

7

2,400

$ 6,100.00

8

2,800

$ 6,700.00

9

3,200

$ 7,300.00

10

3,600

Bell Bike Co. report the following information about its sales and cost of sales.
a) Draw and estimated line of cost behavior using a scattered diagram and compute fixed costs per unit sold.
b) Then use the high-low method to estimate the fixed and variable components of the cost of sales.

$ 7,900.00