Question: 1. Zee, Inc. has decided to use the high-low method to estimate the total cost and fixed and variable cost components of total cost. The

1. Zee, Inc. has decided to use the high-low method to estimate the total cost and fixed and variable cost components of total cost. The data for various levels of production are as follows: Units Produced 15,000 10,000 22,500 30,000 25,000

a. Calculate the unit variable cost. Total Costs $775,000 750,000 845,000 950,000 870,000

b. Calculate the total fixed cost.

c. Write the total cost equation for Zee, Inc.

d. If Zee, Inc. processes 20,000 units, the estimated total cost using the high-low method would be:

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