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Module 3: Decision Making
(Cost Estimation/Prediction Methods)
High-low Method Procedures:

Step 4. Let (Y) be the estimated/predicted total production
costs and (X) be a certain level of production

Let (Y)= ? (to be computed)

Let (X)= 6,000 units during August (to be manufactured)

Step 5. State the results in equation result (Y = f + vX)

Y = ? estimated/predicted total production costs
f = 26,000 computed

v = $ 60 computed
X = 6,000 units given

Therefore the estimated/predicted total production costs for
August at 6000 units production level is, $386, 000.