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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 1,100 $223,200 2,180 325,130 3,100 347,200 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 1,510 units of production. Total cost for 1,510 units: Break-even sales and sales to realize operating income For the current year ended March 31, Cosgrove Company expects fixed costs of $624,000, a unit variable cost of $64, and a unit selling price of $96. a. Compute the anticipated break-even sales (units). units b. Compute the sales (units) required to realize operating income of $144,000. units
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