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
100,000		$1,800,000
180,000		2,800,000
300,000		4,300,000

a.  Determine the variable cost per unit and the fixed cost. Round variable cost per unit to the nearest cent.

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 260,000 units of production.
$fill in the blank 3