Reword the following answer: The high-low method is an approach used in managerial accounting for determining the variable and fixed costs in a company's production process or for other costs incurred by a business, such as utilities expenses. It calculates the variable costs by comparing the difference in cost between the highest and lowest volumes to the difference in the output levels. This requires identifying the highest and lowest activity levels and their corresponding total costs. A. Determining the Variable Cost per Unit and the Total Fixed Cost Here, the highest level of production is 120,000 units with a total cost of $32,120,000 and the lowest level of production is 80,000 units with a total cost of $25,100,000. Step 1: Calculate the variable cost per unit. Variable Cost per Unit = (High Total Cost - Low Total Cost) / (High Activity Level - Low Activity Level) Variable Cost per Unit = ($32,120,000 - $25,100,000) / (120,000 units - 80,000 units) = $7,020,000 / 40,000 units = $175.50 per unit Step 2: Calculate the total fixed cost. Total Cost = Fixed Cost + (Variable Cost per Unit * Number of Units Produced) We can rearrange this formula to calculate the Fixed Cost: Fixed Cost = Total Cost - (Variable Cost per Unit * Number of Units Produced) So let's calculate the fixed cost at the highest level of activity: Fixed Cost = $32,120,000 - ($175.50 * 120,000 units) = $32,120,000 - $21,060,000 = $11,060,000 B. The total cost for 115,000 units of production can be estimated based on the variable cost per unit and the total fixed cost. Total Cost = Fixed Co