Required Information
[The following Information applies to the questions displayed below.]
Felix & Company reports the following Information.
Period Units Produced Total Costs
1 0 $ 3,060
2 200 4,140
3 400 5,220
4 600 6,300
5 800 7,380
6 1,000 8,460
7 1,200 9,540
8 1,400 10,620
9 1,600 11,700
10 1,800 12,780
(1) Use the high-low method to estimate the fixed and variable components of total costs.
(2) Estimate total costs if 3,060 units are produced.
High-Low method - Calculation of variable cost per unit
Cost at highest volume - Cost at lowest volume $ 9,720
Highest volume - Lowest volume 0
High-Low method - Calculation of fixed costs
Total cost at the highest volume
Variable costs at highest volume
Highest volume
Variable cost per unit
Total variable costs at highest
volume
Total fixed costs
Total cost at the lowest volume
Variable costs at lowest volume
Lowest volume
Variable cost per unit
Total variable costs at lowest
volume
Total fixed costs
(2) Estimated cost if 3,060 units are produced:
Estimated total cost
