< eBook Show Me How Video High-Low Method Liberty Inc. has decided to use the high-low...

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< eBook Show Me How Video High-Low Method Liberty Inc. has decided to use the high-low method to estimate costs. The data for various levels of production are as follows: Units Produced Total Costs 3,060 1,260 $ 87,480 136,080 109,540 2,330 a. Determine the variable cost per unit and the fixed cost. Variable cost per unit Fixed cost X b. Based on part (a), estimate the total cost for 1,560 units of production. Feedback Check My Work a. Divide the difference between the highest and lowest total costs by the difference between the highest and lowest production units. Multiply the variable unit cost by the number of units. Subtract this variable cost from the total cost. b. Multiply the variable unit cost by the number of units produced. Add variable cost to the fixed cost to determine the total cost. < eBook Show Me How Video High-Low Method Liberty Inc. has decided to use the high-low method to estimate costs. The data for various levels of production are as follows: Units Produced Total Costs 3,060 1,260 $ 87,480 136,080 109,540 2,330 a. Determine the variable cost per unit and the fixed cost. Variable cost per unit Fixed cost X b. Based on part (a), estimate the total cost for 1,560 units of production. Feedback Check My Work a. Divide the difference between the highest and lowest total costs by the difference between the highest and lowest production units. Multiply the variable unit cost by the number of units. Subtract this variable cost from the total cost. b. Multiply the variable unit cost by the number of units produced. Add variable cost to the fixed cost to determine the total cost.

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Solution a Variable cost per unit Total cost Fixed ... View the full answer