Problem: The Smith Company has accumulated the following data concerning a mixed cost. The company is using the units produced as the activity level.
Units Produced Total Cost
August 10,000 $14,940
September 8,600 $13,450
October 7,100 $11,200
November 7,700 $12,200
December 8,200 $12,660
1. Using the high-low method, compute the variable and fixed cost elements.
2. If the company produces 8,000 units, estimate the total cost.
1 to 2 pages - written in APA format with references.