Using the high-low method for cost separation

Steps:

• Identify highest production (1100 units at $990) and lowest (600 units at$690).
• Calculate variable rate: ($990 -$690) / (1100 - 600 units) = $300 / 500 =$0.60 per unit.
• Calculate fixed cost from low point: $690 - ($0.60 × 600) = $690 -$360 = $330.
• Verify at 800 units: $0.60 × 800 +$330 = $480 +$330 = $810 (matches data).

Why none match:

• Calculated fixed cost is $330 based on linear total cost = fixed + (variable rate × units); options do not include this value.

Final answer: $330