Mears Production Company makes several products and sells them for an average price of $75. Mears' accountant is considering two different approaches to estimating the firm's total monthly cost function, account analysis and high-low. In both cases, she used units of production as the independent variable. For the account analysis approach, she developed the cost function by analyzing each cost item in February, when production was 1,550 units. The following are the results of that analysis:

Cost Item	Total Cost	Variable Cost	Fixed Cost
Direct materials	$6,665	$6,665	$0
Direct labor	$7,905	$7,905	$0
Factory overhead	$7,170	$4,030	$3,140
Selling expenses	$5,295	$2,015	$3,280
Administrative expenses	$4,300	$0	$4,300
Total expenses	$31,335	$20,615	$10,720

For the high-low method, she developed the cost function using the same data from February and data from August, when production was 2,450 units and total costs were $44,171. After developing the two cost functions, the accountant used them to make predictions for the month of December, when production was expected to be 1,775 units.

Part A
1. Using account analysis, what was the accountant's estimate of total fixed costs for December?    

2. Using account analysis, what was the accountant's estimate of total variable costs for December?   

Tries 0/5

Part B
1. Using the high-low method, what was the accountant's estimate of total fixed costs for December?    

2. Using the high-low method, what was the accountant's estimate of variable costs per unit for December?