Problem 4-9 High-Low, Profit Equation (16 points) Crux, Inc. produces amplifiers. Each unit sells for on production/sales and costs for 2020: $900 Below is information Production and Sales in Units Production Selling and Admin. Costs Costs January 105 $88,860 $23,570 February 117 97,600 25,200 March 97 83,007 22,495 April 106 89,600 23,720 May 115 96,200 24,950 June 125 103,500 26,250 July 128 105,670 26,690 August 132 108,550 27,200 September 138 112,978 28,030 October 126 104,200 26,400 November 124 102,750 26,150 December 108 91,050 23,990 Total 1,421 $1,183,965 $304,645 Average cost per unit $833.19141 $214.38776 Required a. Use the high-low method to identify the fixed and variable cost components for both production costs and selling and administrative costs. Production costs: (Use Production costs and Production Costs/Sales in units) Variable cost per unit = $29,971 $731.00 41 1 Fixed costs per month = month costs 112,978 $100,878 $12, 100 12 month costs 145,200 Selling and administrative costs: (Use Selling and administrative costs and Production Costs/Sales in units) Variable cost per unit = $5,535 $135.00 41 1 12 Fixed costs per month = month month costs costs $28,030 $18,630 $9,400 112,800 = 1,650 units. b. The company estimates that production and sales in 2021 will be Based on this estimate, forecast income before taxes for 2021. Sales price per unit is indicated in the beginning above information. Sales Less production costs: Variable Fixed Less selling and administrative costs: Variable Fixed Income (loss)