Question $3$

i$.$ A company has identified that the Total Fixed Costs increases by GHC $20,000$ when activity level equals or exceeds $25,000.$ the VC$/$unit is constant over this range of activity. The company has identified two costs at two activity levels.

You are required to use the high$-$low method to find the VC$/$unit and estimate the Total cost $($TC$)$ that will be incurred in producing

i$.45,000$ units

ii$.23,000$ units

iii. $65,000$ units

iv$.19,000$ units.

$(20$ marks$).$