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 Produced Total Costs 2,210 $196,560 910 126,360 1,370 167,920 a. Determine the variable cost per unit and the total fixed cost. Variable cost (Round to two decimal places.) $fill in the blank 1 per unit Total fixed cost $fill in the blank 2 b. Based on part (a), estimate the total cost for 1,120 units of production. Total cost for 1,120 units: $fill in the blank 3
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 Produced Total Costs 2,210 $196,560 910 126,360 1,370 167,920 a. Determine the variable cost per unit and the total fixed cost. Variable cost (Round to two decimal places.) $fill in the blank 1 per unit Total fixed cost $fill in the blank 2 b. Based on part (a), estimate the total cost for 1,120 units of production. Total cost for 1,120 units: $fill in the blank 3
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 Produced | Total Costs | |||
| 2,210 | $196,560 | |||
| 910 | 126,360 | |||
| 1,370 | 167,920 |
a. Determine the variable cost per unit and the total fixed cost.
| Variable cost (Round to two decimal places.) | $fill in the blank 1 | per unit |
| Total fixed cost | $fill in the blank 2 |
b. Based on part (a), estimate the total cost for 1,120 units of production.
| Total cost for 1,120 units: | $fill in the blank 3 |
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