Question 10 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 6,820 $505,120 2,420 324,720 4,160 473,010 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 3,330 units of production. Total cost for 3,330 units: $fill in the blank 3
Question 10 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 6,820 $505,120 2,420 324,720 4,160 473,010 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 3,330 units of production. Total cost for 3,330 units: $fill in the blank 3
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question 10
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 | |||
| 6,820 | $505,120 | |||
| 2,420 | 324,720 | |||
| 4,160 | 473,010 |
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 3,330 units of production.
| Total cost for 3,330 units: | $fill in the blank 3 |
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