Problem 3: Felix and Company reports the following information. (1) Use the high-low method to estimate...

Transcribed Image Text:

Problem 3: Felix and Company reports the following information. (1) Use the high-low method to estimate the fixed and variable components of total costs. (2) Estimate total costs if 3,000 units are produced. Period Units Produced Units Total Costs Period Produced Total Costs 1 0 $2,500 6 2,000 $5,500 2 400 $3,100 7 2,400 $6,100 3 800 $3,700 8 2,800 $6,700 4 1,200 $4,300 9 3,200 $7,300 5 1,600 $4,900 10 3,600 $7,900 (1) Calculate the variable cost per unit: (1) Calculate the fixed cost at the high volume level: (1) Calculate the fixed cost at the low volume level: (2) Calculate the estimated total cost of 3,000 units are produced: Problem 3: Felix and Company reports the following information. (1) Use the high-low method to estimate the fixed and variable components of total costs. (2) Estimate total costs if 3,000 units are produced. Period Units Produced Units Total Costs Period Produced Total Costs 1 0 $2,500 6 2,000 $5,500 2 400 $3,100 7 2,400 $6,100 3 800 $3,700 8 2,800 $6,700 4 1,200 $4,300 9 3,200 $7,300 5 1,600 $4,900 10 3,600 $7,900 (1) Calculate the variable cost per unit: (1) Calculate the fixed cost at the high volume level: (1) Calculate the fixed cost at the low volume level: (2) Calculate the estimated total cost of 3,000 units are produced: