Crane 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 14,000 units of production Total Costs Units Produced $700,000 10,000 15,000 22,500 840,000 920,000

Question: Crane 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.

Crane 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:

Total Costs Units Produced $700,000 10,000 15,000 22,500 840,000 920,000

a. Determine the variable cost per unit and the fixed cost.
b. Based on part (a), estimate the total cost for 14,000 units of production.

Total Costs Units Produced $700,000 10,000 15,000 22,500 840,000 920,000

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