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Saad Company is developing a cost function for its production costs using the high-low method (Two-Point Method: high and low point). The following data have
Saad Company is developing a cost function for its production costs using the high-low method (Two-Point Method: high and low point). The following data have been collected for the year 2017:
Number of units Total cost of
production
Quarter
1 4,000 $ 690
2 5,900 883.8
3 7,800 1077.6
4 9,000 1,200
Calculate the following amounts:
a. The variable cost per unit
b. The fixed cost
c. The estimated total cost for 11,000 units.
d. The estimated total cost for 5,000 units.
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