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A company is estimating its costs based on past information. The total costs incurred by the company at different levels of output were as follows:
Output Total costs
(units) $
160,000 2,420,000
185,000 2,775,000
190,000 2,840,000
The company uses the high-low method to separate total costs into their fixed and variable elements. Ignore inflation.
The estimated total costs for an output of 205,000 units is
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