Ziegler Inc. has decided to use the high-low method to estimate the total cost and the fixed
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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 | |||
4,800 | $376,320 | |||
1,600 | 241,920 | |||
3,070 | 272,030 |
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 2,300 units of production.
Total cost for 2,300 units: | $fill in the blank 3 |
Related Book For
Applying International Financial Reporting Standards
ISBN: 978-0730302124
3rd edition
Authors: Keith Alfredson, Ken Leo, Ruth Picker, Paul Pacter, Jennie Radford Victoria Wise
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