Summit Manufacturing wants to estimate their total cost and the fixed and variable cost components using the high-low method. The data for various production levels are: Units Produced Total Costs 2,100 4,500 6,800 $285,000 $395,000 $482,000 a. Determine the variable cost per unit and the total fixed cost. b. Based on part (a), estimate the total cost for 3,200 units of production.

Summit Manufacturing wants to estimate their total cost and the fixed and variable cost components using the high-low method. The data for various production levels are: Units Produced Total Costs 2,100 4,500 6,800 $285,000 $395,000 $482,000 a. Determine the variable cost per unit and the total fixed cost. b. Based on part (a), estimate the total cost for 3,200 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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