3. 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
7,260			$566,720
2,860			364,320
4,660			540,000

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 3,640 units of production.

Total cost for 3,640 units:

$______