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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.

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
2,900 $313,600
900 201,600
2,010 231,840

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 1,370 units of production.

Total cost for 1,370 units: $fill in the blank 3

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