Question: 2 3 4 5 Smith Inc has decided to use the high-low method to estimate the cost of the fixed and variable components of

2 3 4 5 Smith Inc has decided to use the high-low

2 3 4 5 Smith Inc has decided to use the high-low method to estimate the cost of the fixed and variable components of the total cost. The data for various levels of production are as follows: Units Produced Total Costs 10 6 7 8 6000 9 8500 10 10000 11 12 525000 625000 750000 13 14 (a) Determine the variable cost per unit and fixed cost 15 16 17 (b) Determine the equation for production based upon your findings. 18 19 20 (C) Based on part (a) estimate the cost for 12000 units

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