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Tashiro Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows:
Units Produced Total Costs
4,930 $365,400
2,030 234,900
3,060 252,130
a. Determine the variable cost per unit and the total fixed cost.
Variable cost (Round to two decimal places.) $fill in the blank 1
per unit
Total fixed cost $fill in the blank 2
b. Based on part (a), estimate the total cost for 2,510 units of production.
Total cost for 2,510 units: $fill in the blank 3
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