Evander 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 770 $120,960 1,470 136,010 2,170 188,160 a. Determine the variable cost per unit and the total fixed cost.Variable cost fill in the blank 1 of 2$Total fixed cost fill in the blank 2 of 2$ b. Based on part (a), estimate the total cost for 1,060 units of production.Total cost for 1,060 units fill in the blank 1 of 1$
Evander 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 770 $120,960 1,470 136,010 2,170 188,160 a. Determine the variable cost per unit and the total fixed cost.Variable cost fill in the blank 1 of 2$Total fixed cost fill in the blank 2 of 2$ b. Based on part (a), estimate the total cost for 1,060 units of production.Total cost for 1,060 units fill in the blank 1 of 1$
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Evander 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 |
|---|---|
| 770 | $120,960 |
| 1,470 | 136,010 |
| 2,170 | 188,160 |
a. Determine the variable cost per unit and the total fixed cost.
Variable cost fill in the blank 1 of 2$
Total fixed cost fill in the blank 2 of 2$
b. Based on part (a), estimate the total cost for 1,060 units of production.
Total cost for 1,060 units fill in the blank 1 of 1$
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