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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

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
2,460 $154,980
4,240 225,750
6,560 241,080

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 3,250 units of production.

Total cost for 3,250 units: $

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