Company 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 8,100 $525,000 11,250 630,000 18,100 690,000 Please, calculate this questions a. Determine the variable cost per unit and the total fixed cost. b. Based on part (a), estimate the total cost for 15,000 units of production.
Company 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 8,100 $525,000 11,250 630,000 18,100 690,000 Please, calculate this questions a. Determine the variable cost per unit and the total fixed cost. b. Based on part (a), estimate the total cost for 15,000 units of production.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 7E: High-low method Ziegler Inc. has decided to use the high-low method to estimate the total cost and...
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Company 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
8,100 $525,000
11,250 630,000
18,100 690,000
Please, calculate this questions
a. Determine the variable cost per unit and the total fixed cost.
b. Based on part (a), estimate the total cost for 15,000 units of production.
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