High / low and least square method

Planters limited produces peanuts. You are the accountant in the production department and have been provided with the following information for the month of June 2018:

Production units Total Costs $

500 3520

440 3280

400 3120

280 3640

160 2160

Required:

Use the High Low and Least Squared methods of separating costs to do the following:

(a) Calculate the variable cost per unit.

(b) Find the amount of fixed cost present in the cost structure.

(c) Develop a cost function/equation that relates total cost to activity levels.

(d) Calculate the production level at which total costs is $2,400.

(e) Calculate the total cost if production level is 1500 units.