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
1,080			$168,480
2,050			245,420
3,480			262,080

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 1,080 2,050 3,480 Total Costs $168,480 245,420 262,080 a. Determine the variable cost per unit and the total fixed cost. Variable cost: (Round to the nearest dollar.) Total fixed cost: b. Based on part (a), estimate the total cost for 1,640 units of production Total cost for 1,640 units: per unit