The following data have been extracted from the records of Puzzle, Inc.:

Production level, in units - February = 12,000 August = 18,000

Variable costs - February- $21,000 August = $?

Fixed costs - Feb = ? Aug = 31,000

Mixed costs - Feb = 18,000 Aug = ?

Total costs - Feb = $70,000 Aug = $88,000

Required:

a. Calculate the missing costs

b. Calculate the cost formula for mixed cost using the high-low method

c. Calculate the total cost that would be incurred for the production of 20,000 units

d. Identify the two key cost behavior assumptions made in the calculation of your answer to part c