High$-$low method

Evander 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:

This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.

Open spreadsheet

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

Variable cost $

Total fixed cost $

b$.$ Based on part $($a$),$ estimate the total cost for $2,770$ units of production.

Total cost for $2,770$ units $