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
106,500			$28,090,000
116,500			29,690,000
130,500			31,930,000

1. Determine the variable cost per unit and the total fixed cost. Round your answer for variable cost to the nearest cent. Round your answer for total fixed costs to the nearest dollar.

   Variable cost:	$ per unit
   Total fixed cost:	$

2. Based on part (a), estimate the total cost for 85,000 units of production. Round your answer to the nearest dollar.

   Total cost for 85,000 units:

   $