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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
80,000 $25,100,000
92,000 27,206,000
120,000 32,120,000

a. Determine the variable cost per unit and the total fixed cost.

Variable cost (Round to two decimal places.) $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 115,000 units of production.

Total cost for 115,000 units $fill in the blank 3

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