18-2 Colter Company accumulates the following data concerning a mixed cost, using units produced as the activity level.
|
| Units Produced | Total Cost |
| March | 10,000 | $18,000 |
| April | 9,000 | 16,650 |
| May | 10,500 | 18,750 |
| June | 8,800 | 16,200 |
| July | 9,500 | 17,100 |
(a) Compute the variable and fixed cost elements using the high-low method.
(b) Estimate the total cost if the company produces 8,500 units.
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