High-Low Method

Shatner 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
2,790			$302,400
990			194,400
1,850			238,460

a. Determine the Costs that vary in total dollar amount as the level of activity changes.variable cost per unit and the total Costs that tend to remain the same in amount, regardless of variations in the level of activity.fixed cost.

Variable cost: (Round to the nearest dollar.)	$ _________ per unit
Total fixed cost:	$_________

b. Based on part (a), estimate the total cost for 1,360 units of production.

Total cost for 1,360 units:

$__________