Question 3

Ponszko Nursery used high-low data from June and July to determine its variable cost of $10 per unit. Additional information follows:

Month Units produced Total costs

June 2,000 $32,000

July 1,000 20,000

If Ponszkos produces 2,300 units in August, how much is its total cost expected to be?

$10,000

$32,000

$33,000

$35,600