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
1,260			$200,340
2,450			281,590
3,360			311,640

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 1,660 units of production.

Total cost for 1,660 units: