Integrative Case $5-80($Algo$)$ Cost Estimation, CVP Analysis, and Decision Making $($LO $5-1,3,5,6)$

Luke Corporation produces a variety of products, each within its own division. Last year, the managers at Luke developed and began marketing a new chewing gum, Bubbs, to sell in vending machines. The product, which sells for $$5\mathrm{.}90$ per case, has not had the market success that managers expected, and the company is considering dropping Bubbs.

The product$-$line income statement for the past $12$ months follows:

$\backslash$table$[[$Revenue$,,],[$Costs$,,],[,$ Manufacturing costs,$$14,701,650,],[,$ Allocated corporate costs $($@$58),14,446,895,],[$Product$-$line margin,$735,083,15,181,978$

Exercise $5-34($Algo$)$ Methods of Estimating Costs: High$-$Low $($LO $5-1,2)$

Kirby Fasteners supplies the electronics industry with accessories for cases, disc enclosures, and so on$.$ Below are the costs an volumes for the past six months at its Plant number $6$:

Required:

a$.$ Use the high$-$low method to estimate the monthly fixed cost of production and the variable cost of production per unit.

b$.$ Kirby analysts forecast a production level of $12,000$ units in July. Based on the results from requirement $($a$),$ what would be the estimated production costs in July?

Complete this question by entering your answers in the tabs below.

Required $A$

Use the high$-$low method to estimate the monthly fixed cost of production and the variable cost of production per unit. Note: Round "Variable cost" answer to $2$ decimal places.

$\backslash$table$[[$Variable cost$,$$$,65,030\mathrm{.}00$