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
1,365 $226,800
2,220 237,640
3,465 352,800
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 1,740 units of production.
Total cost for 1,740 units