Sailmaster makes boats and has the following costs at the given levels of production:

\begin{tabular}{cr}

\hline Units Produced & Total Costs \\

\hline 200 & $\$ 200,000$ \\

250 & 225,000 \\

300 & 250,000 \\

350 & 275,000 \\

400 & 300,000 \\

450 & 325,000 \\

\hline

\end{tabular}

1. Use the high-low method to compute the variable and fixed elements of Sailmaster's total costs.

2. Compute the total cost of making 500 boats, assuming that total fixed costs and the variable cost rate do not change.