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Question
| Month | Units Produced | Total Cost |
| January | 8,750 | $ 40,500 |
| February | 750 | $ 41,500 |
| March | 12,500 | $ 45,000 |
| April | 17,500 | $ 41,500 |
| May | 23,750 | $ 45,500 |
| June | 11,500 | $38,500 |
a. Using the high-low method, calculate the variable cost per unit and the estimated fixed costs.
b. Using the resulting relationship, predict the costs if they produce 18,500 units in a future period.
Answer
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