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
6,080			$500,080
2,280			321,480
3,850			476,500

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 3,010 units of production.

Total cost for 3,010 units:

$fill in the blank 3