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 3,910 $354,200 1,610 227,700 2,430 273,490 a.Determine the variable cost per unit and the total fixed cost.

Variable cost: (Round to the nearest dollar.) $fill in the blank 1

per unit Total fixed cost: $fill in the blank 2

b.Based on part (a), estimate the total cost for 1,990 units of production.

Total cost for 1,990 units: $fill in the blank 3