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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
3,335			$322,000
1,035			207,000
1,970			259,210

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 1,570 units of production.

Total cost for 1,570 units:

$fill in the blank 3