1. High-Low Method

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
4,420			$196,560
1,820			126,360
2,810			129,170

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

Variable cost (Round to two decimal places.)	$fill in the blank 1	per unit
Total fixed cost	$fill in the blank 2

b. Based on part (a), estimate the total cost for 2,250 units of production.

Total cost for 2,250 units:

$fill in the blank 3

2. Contribution Margin Ratio

a. Imelda Company budgets sales of $850,000, fixed costs of $53,600, and variable costs of $238,000. What is the contribution margin ratio for Imelda Company? (Enter your answer as a whole number.) fill in the blank 1 %

b. If the contribution margin ratio for Peppa Company is 58%, sales were $875,000, and fixed costs were $365,400, what was the income from operations? $fill in the blank 2