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Determine the variable cost per unit and total fixed cost

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Reference no: EM132777417

Problem - 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

Required -

a. Determine the variable cost per unit and the total fixed cost.

b. Based on part (a), estimate the total cost for 115,000 units of production.

Reference no: EM132777417

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