Estimating costs based on past information

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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

Reference no: EM132203731

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