Determine variable cost per unit and the total fixed cost

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Question - 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

750

$132,300

1,320

152,150

2,250

205,800

Required -

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

b. Based on part (a), estimate the total cost for 1,080 units of production.

Reference no: EM133061514

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