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Shatner 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 TotalProduced Cost7,500 .....................$600,00012,500 .................... 725,00020,000 .................... 800,000
(a) Determine the variable cost per unit and the fixed cost.
(b) Based on part (a), estimate the total cost for 10,000 units of production.
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