Cena 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 80,000                  $25,200,000 99,000                   25,220,000 130,000                  31,770,000 a. Determine the variable cost per unit and the total fixed cost. b. Based on part (A), estimate the total cost for 115,000 units of production.

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Chapter1: Financial Statements And Business Decisions
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Cena 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
80,000                  $25,200,000
99,000                   25,220,000
130,000                  31,770,000
a. Determine the variable cost per unit and the total fixed cost.
b. Based on part (A), estimate the total cost for 115,000 units of production.

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