Forster is estimating costs for the last half of the year based on activity during the first half of the year. The results from January through June are as follows:

Required
A. Using the high/ low cost estimation method, determine the total variable cost per unit made.
B. Using the high/ low cost estimation method, determine the total fixed cost per month.
C. What is the cost estimation equation?
D. Estimate the total cost of 11,000 units are made during July using the equation developed in part (C).
E. Why are the high and low points chosen based on units?

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Month Units 3,500 6,200 4,600 12,500 8,100 9800 Production Costs January February March April May June $56,700 81,800 69800 128,900 95,800 122,100