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

Tashiro Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows:

Units ProducedTotal Costs

6,400$694,400

2,400$446,400

4,580$638,850

a.Determine thevariable costper unit and the totalfixed cost.

Variable cost(Round to two decimal places.) $_____ per unit?

Total fixed cost $____?

b.Based on part (a), estimate the total cost for 3,170 units of production.

Total cost for 3,170 units:$______?

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