Stafford Company makes sailboats. During the first six months of 2002, Stafford had the following production expenses:

Month Units Produced Production Expenses

January 60 $ 12,000

February 50 11,000

March 80 15,000

April 70 13,400

May 90 16,000

June 40 10,000

REQUIRED:

Using the high-low method, estimate the variable and fixed cost elements of the production cost and write out the cost formula.