Question: Shatner 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.

Shatner 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:

a. Determine the variable cost per unit and the fixed cost.b. Based on part (a), estimate the total cost for 10,000 units ofproduction.

Units Produced Total Costs 7,500 12,500 20,000 $600,000 725,000 800,000

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