High$-$Low Method

Liberty Inc. has decided to use the high$-$low method to estimate costs. The data for various levels of production are as follows:

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

Variable cost per unit

Fixed cost

b$.$ Based on part $($a$),$ estimate the total cost for $2,230$ units of production.

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Subtract this variable cost from the total cost.

Multiply the variable unit cost by the number of units produced. Add variable cost to the fixed cost to determine the total cost.