High-Low Method 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 1,260 $128,520 2,130 164,220 3,360 199,920 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 1,660 units of production. Total cost for 1,660 units: $
High-Low Method 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 1,260 $128,520 2,130 164,220 3,360 199,920 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 1,660 units of production. Total cost for 1,660 units: $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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High-Low Method
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 | |||
| 1,260 | $128,520 | |||
| 2,130 | 164,220 | |||
| 3,360 | 199,920 |
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 1,660 units of production.
| Total cost for 1,660 units: | $ |
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