Ziegler Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows: Units Produced Total Costs 7,425     $415,800   2,925     267,300   4,860     348,380   a.  Determine the variable cost per unit and the total fixed cost. Variable cost: (Round to the nearest dollar.) $ per unit Total fixed cost: $ b.  Based on part (a), estimate the total cost for 3,730 units of production. Total cost for 3,730 units: $

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 7E: High-low method Ziegler Inc. has decided to use the high-low method to estimate the total cost and...
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Ziegler Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows:

Units Produced Total Costs
7,425     $415,800  
2,925     267,300  
4,860     348,380  

a.  Determine the variable cost per unit and the total fixed cost.

Variable cost: (Round to the nearest dollar.) $ per unit
Total fixed cost: $

b.  Based on part (a), estimate the total cost for 3,730 units of production.

Total cost for 3,730 units: $
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