High-Low Method

Tashiro 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
2,145			$123,760
845			79,560
1,320			107,760

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

Variable cost (Round to two decimal places.)	$	per unit
Total fixed cost	$

b. Based on part (a), estimate the total cost for 1,080 units of production.

Total cost for 1,080 units:

$