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 80,000 $25,100,000 92,000 27,206,000 120,000 32,120,000 a. Determine the variable cost per unit and the total fixed cost. Variable cost (Round to two decimal places.) per unit Total fixed cost b. Based on part (a), estimate the total cost for 115,000 units of production. Total cost for 115,000 units
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 80,000 $25,100,000 92,000 27,206,000 120,000 32,120,000 a. Determine the variable cost per unit and the total fixed cost. Variable cost (Round to two decimal places.) per unit Total fixed cost b. Based on part (a), estimate the total cost for 115,000 units of production. Total cost for 115,000 units
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 | |||
| 80,000 | $25,100,000 | |||
| 92,000 | 27,206,000 | |||
| 120,000 | 32,120,000 |
a. Determine the variable cost per unit and the total fixed cost.
| Variable cost (Round to two decimal places.) | $ per unit |
| Total fixed cost | $ |
b. Based on part (a), estimate the total cost for 115,000 units of production.
| Total cost for 115,000 units | $ |
Transcribed Image Text: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
80,000
$25,100,000
92,000
27,206,000
120,000
32,120,000
a. Determine the variable cost per unit and the total fixed cost.
Variable cost (Round to two decimal places.)
per unit
Total fixed cost
b. Based on part (a), estimate the total cost for 115,000 units of production.
Total cost for 115,000 units
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