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W and o inc has decided to use the high low method to

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W and O 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 Produced Total Costs

  • 10,000 $750,000
  • 22,500 845,000
  • 30,000 950,000

a. Determine the variable cost per unit and the fixed cost.

b. Based on part (a), estimate the total cost for 25,000 units of production.

Reference no: EM13600903

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