Walton Woodcraft Company manufactures antique wooden cabinets to house modern televisions. The Company began operations in January of last year. Sidney Myrick, the owner, asks for your assistance. He believes that he needs to better understand the cost of the cabinets for pricing purposes. You have collected the following data concerning actual production over the past year:

	Number of
Month	Cabinets Produced		Total Cost
January	820		$	21,100
February	3,700			33,200
March	1,980			29,900
April	620			18,800
May	1,590			28,400
June	1,280			27,400
July	1,140			25,100
August	1,710			31,700
September	2,290			32,300
October	2,940			31,800
November	3,280			32,600
December	370			6,560

Required

1. To understand the departments cost behavior, you decide to plot the points on graph paper and sketch a total cost line.

1. (1) Enter the number of units and their costs in increasing order.

2. Using the high-low method, compute the total cost equation for the preceding data.

1. (1) Compute the variable cost per unit.

2. (2) Compute total fixed costs.

3. (4) Calculate the total cost assuming 1,600 cabinets are made.