Tashiro 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:

Units Produced                            Total Costs 

60,000 ....................................    $19,200,000 

69,000 ....................................      20,010,000 

90,000 ....................................      24,090,000  

a. Determine the variable cost per unit and the total fixed cost.

b. Based on part (a), estimate the total cost for 86,000 units of production.