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
2,635			$128,520
935			82,620
1,570			86,570

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 1,290 units of production.

Total cost for 1,290 units:

$fill in the blank 3