Question: Problem 5 Smith Inc has decided to use the high-low method to estimate the cost of the fixed and variable components of the total cost.

Problem 5 Smith Inc has decided to use the high-low method

Problem 5 Smith Inc has decided to use the high-low method to estimate the cost of the fixed and variable components of the total cost. The data for various levels of production are as follows: Units Produced Total Costs 6000 8500 10000 525000 625000 750000 (a) Determine the variable cost per unit and fixed cost (b) Determine the equation for production based upon your findings. (C) Based on part (a) estimate the cost for 12000 units

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