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 6,290 $600,880 2,590 386,280 4,620 523,190 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 3,200 units of production. Total cost for 3,200 units: $fill in the blank 3
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 6,290 $600,880 2,590 386,280 4,620 523,190 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 3,200 units of production. Total cost for 3,200 units: $fill in the blank 3
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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High-Low Method
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 | |||
| 6,290 | $600,880 | |||
| 2,590 | 386,280 | |||
| 4,620 | 523,190 |
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 3,200 units of production.
| Total cost for 3,200 units: | $fill in the blank 3 |
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