Rooney Woodcraft Company manufactures antique wooden cabinets to house modern televisions. The Company began operations in January of last year. Sidney Myrick, the owner, asks for your assistance. He believes that he needs to better understand the cost of the cabinets for pricing purposes. You have collected the following data concerning actual production over the past year:

Number of

Month

Cabinets Produced

Total Cost

January

870

$

21,700

February

3,650

33,300

March

1,920

29,500

April

660

18,700

May

1,600

28,300

June

1,270

27,000

July

1,130

25,500

August

1,780

31,900

September

2,350

32,800

October

2,940

31,200

November

3,280

33,000

December

340

6,820

Required

Using the high-low method, compute the total cost equation for the preceding data.

(1) Compute the variable cost per unit.

(2) Compute total fixed costs.

(4) Calculate the total cost assuming 2,700 cabinets are made.

Variable cost per unit
Total fixed costs
Total costs