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Tashiro Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost.

Tashiro Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows:

Units Produced Total Costs
5,425 $480,200
1,925 308,700
3,450 378,670

a. Determine the variable cost per unit and the total fixed cost.

Variable cost (Round to two decimal places.) $fill in the blank 1 per unit
Total fixed cost $fill in the blank 2

b. Based on part (a), estimate the total cost for 2,650 units of production.

Total cost for 2,650 units: $fill in the blank 3

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