Saad Company is developing a cost function for its production costs using the high-low method (Two-Point Method: high and low point). The following data have been collected for the year 2017:

Number of units Total cost of

production

Quarter

1 4,000 $ 690

2 5,900 883.8

3 7,800 1077.6

4 9,000 1,200

Calculate the following amounts:

a. The variable cost per unit

b. The fixed cost

c. The estimated total cost for 11,000 units.

d. The estimated total cost for 5,000 units.