Question
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 ProducedTotal Costs1,575$126,0003,260183,5405,075196,000
a.Determine thevariable costper unit and the totalfixed cost.
Variable cost: (Round to the nearest dollar.)$per unitTotal fixed cost:$
b.Based on part (a), estimate the total cost for 2,390 units of production.
Total cost for 2,390 units:
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Accounting A Pathway Into The World Of Business And Data Analytics
Authors: Carl S. Warren, Jefferson P. Jones, William Tayler
29th Edition
0357899644, 9780357899649
