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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 | |||
3,630 | $240,240 | |||
1,430 | 154,440 | |||
2,380 | 189,450 |
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 1,820 units of production.
Total cost for 1,820 units: | $fill in the blank 3 |
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