High-low method
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
1,595 $193,140
2,800 261,600
4,495 300,440
a. Determine the variable cost per unit and the total fixed cost.
Variable cost $
Total fixed cost $
b. Based on part (a), estimate the total cost for 2,190 units of production.
Total cost for 2,190 units $