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Stuart Boat Company makes inexpensive aluminum fishing boats. Production is seasonal, with considerable activity occurring in

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Variable cost per unit=[Total cost at highest level-Total cost at lowest level]/(Highest level-Lowest level)

=(149200-46000)/(202-30)

=$600 per boat

Fixed cost=149200-(600*202)

=$28000

Total estimated cost=Fixed cost+Total variable costs

=28000+(600*100)

=$88000

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