Zeta Inc. has decided to use the high-low method to estimate the total cost and the fixed

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Zeta 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

45,000 ...... $1,535,000

50,000 ...... 1,650,000

70,000...... 2,110,000

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

b. Based on part (a), estimate the total cost for 60,000 units of production.

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Survey of Accounting

ISBN: 978-1133189121

6th edition

Authors: Carl S Warren

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Question Posted: Feb 04, 2014 07:54 AM

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Zeta Inc. has decided to use the high-low method to estimate the total cost and the fixed

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a The fixed cost can be determined by subtracting the estimated total ...View the full answer

Survey of Accounting

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