uestion Cos ructure estimation activity volume month Oct Nov Dec in units 85 65 105 total costs $4,950 $5,100 $6,700 a) Which cost structure estimation method should we use? O high-low method O account classification method b) To identify the low and high points, we should look for 0 lowest/highest activity O lowest/highest costs c) Estimate the cost structure parameters: total FC= unit VC- Write down the total cost equation * volume d) Predict the total costs of producing 90 units: TC = e) Can we use the estimates from (c) to predict costs at volume of 5,000 units? O NO: 5,000 units is outside the relevant range (the normal range of activity is around 65-105 units) O YES: Just plug in volume-5,000 in the total cost equation