Havana Hats makes the world's best hats. Information for the last eight months follows:
Number of Hats Produced: 7,800 7,250 6,150 5,250 4,500 2,100 2,500 4,550
Month: January February March April May June July August
Total Cost: $12,325 $11,900 $11,050 $8,200 $7,500 $5,200 $5,400 $7,650
Required: Using the high-low method, calculate the variable cost per hat and total fixed cost per month. Note: Round your "Variable cost per unit" answer to 2 decimal places.
Answer is complete but not entirely correct.
Variable cost per unit: $1.46
Fixed cost: $937