Estimating fixed and variable costs using the high-low method Ahmed Boat Company makes inexpensive aluminum fishing boats. Production is seasonal, with considerable activity occurring in the spring and summer. Sales and production tend to decline in the fall and winter months. During 2007, the high point in activity occurred in June when it produced 300 boats at a total cost of $175,000. The low point in production occurred in January when it produced 140 boats at a total cost of $111,000.

Required Use the high-low method to estimate the amount of fixed cost incurred each month by Ahmed Boat Company