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 2,250 $388,800 4,590 566,350 6,750 604,800 a. Determine the variable cost per unit and the total fixed cost. Variable cost: (Round to the nearest dollar.) per unit Total fixed cost: b. Based on part (a), estimate the total cost for 3,240 units of production. Total cost for 3,240 units: %24 %24

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 2,250 $388,800 4,590 566,350 6,750 604,800 a. Determine the variable cost per unit and the total fixed cost. Variable cost: (Round to the nearest dollar.) per unit Total fixed cost: b. Based on part (a), estimate the total cost for 3,240 units of production. Total cost for 3,240 units: %24 %24

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Suppose that the total cost to produce 200 units of a consumer item is C(200) = $3,315 and that the marginal cost at this production level is C'(200) = 14 dollars per unit made. Use this information to estimate the total cost C(205). Enter the exact integer value of your cost estimate such as 9823 or 12376 for example.
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