The Brooke Company has estimated costs for the following monthly production levels:

Production volume (units) 1,000 2,000 3,000

Cost A $6,000 $9,000 $12,000

Cost B 8,000 16,000 24,000

Cost C 10,000 10,000 10,000

Cost D 12,000 24,000 36,000

Cost E 14,000 20,000 26,000

Cost F 16,000 32,000 48,000

Cost G 18,000 26,000 34,000

Cost H 20,000 20,000 20,000

Total manufacturing costs $104,000 $157,000 $210,000

Required:

a. Identify each cost as a variable, fixed, or mixed cost.

Cost A ____________________

Cost B ____________________

Cost C ____________________

Cost D ____________________

Cost E ____________________

Cost F ____________________

Cost G ____________________

Cost H ____________________

b. Measure the following equation using the high-low method (hint: use the total manufacturing costs and units from the first and third columns.):

Total manufacturing costs = a + b (units)