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
101,000			$29,562,000
114,000			31,798,000
129,000			34,378,000

This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.

Open spreadsheet

1. Determine the variable cost per unit and the total fixed cost. Round your answer for variable cost to the nearest cent. Round your answer for total fixed costs to the nearest dollar.

   Variable cost:	$fill in the blank 2 per unit
   Total fixed cost:	$fill in the blank 3

2. Based on part (a), estimate the total cost for 83,000 units of production. Round your answer to the nearest dollar.

   Total cost for 83,000 units:

   $fill in the blank 4

Excel template D E F G A B High-low method 1 2 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: 3 4 5 DATA 6 Units Produced Total Costs 7 101,000 $29,562,000 8 114,000 31,798,000 9 129,000 34,378,000 10 Using formulas and cell references, perform the required analysis, and input your answers into the green cells in the Amount column. Transfer the numeric results for the green entry cells (C14:C15, C18) into the appropriate fields in CNOWv2 for grading. 11 12 13 Amount Formulas 14 a. Variable cost per unit 15 Total fixed cost 16 17 b. Units produced 83,000 18 Total cost 19 20 21 22