Question: 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: Units

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:

Units Produced Total Costs
3,190 $ 117,040
2,050 103,830
990 75,240

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

Variable cost per unit $fill in the blank 1
Fixed cost $fill in the blank 2

b. Based on part (a), estimate the total cost for 1,500 units of production. $fill in the blank 3

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