Carson, which uses the high-low method of estimating costs, reported total costs of $24 per unit when production was at its lowest level, at 10,000 units. When production doubled to its highest level, the total cost per unit dropped to $15. Carson would estimate the variable cost per unit?

Abdulwahab Corporation is estimating the cost function for total cost of production of product A using the high-low method.  The data collected for the past year is as following:                                                    Number of units             Total                              Quarter            produced                 Costs                                   1                     4,000                $   1,000                                   2                     5,400                     1,280                                   3                     7,000                     1,600                                   4                     9,000                     2,000               Calculate the following amounts:                                 The variable cost per unit The fixed cost Explain the method used by the company to estimate the cost function. Suggest other methods than may be used to estimate cost function.

Sierra Company produces its product at a total cost of $120 per unit. Of this amount, $40 per unit is selling and administrative costs. The total variable cost is $96 per unit, and the desired profit is $24.00 per unit. Determine the markup percentage using the (a) total cost, (b) product cost, and (c) variable cost methods. Round your answers to one decimal place. a. Total cost b. Product cost c. Variable cost % % %

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 60,000     $19,200,000   69,000     20,010,000   90,000     24,090,000   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 86,000 units of production. Total cost for 86,000 units $fill in the blank 3