The Choco company sells Chocolate. You are the accountant in the production department and have been provided with the following information for the month of June 2018:

Production units	Total Costs $
75	2,640
66	2,460
60	2,340
42	1,980
24	1,620

Required:

1. Use the High/Low Method of separating costs to do the following:

a. Calculate the variable cost per unit. (4 marks)

b. Find the amount of fixed cost present in the cost structure. (2 marks)

c. Develop a cost function/equation that relates total cost to activity levels. (2 marks)

d. Calculate the production level at which total costs is $20,000. (2 marks)

2. Use the Least Squares Method of separating costs to do the following:

a. Calculate the variable cost per unit. (13 marks)

b. Find the amount of fixed cost present in the cost structure. (2 marks)