1. 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
1,860			$345,960
3,000			459,740
4,960			538,160

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

Variable cost: (Round to the nearest dollar.)	$ per unit
Total fixed cost:	$

b. Based on part (a), estimate the total cost for 2,460 units of production.

Total cost for 2,460 units:

$

2. a. Young Company budgets sales of $970,000, fixed costs of $48,000, and variable costs of $213,400. What is the contribution margin ratio for Young Company? %

b. If the contribution margin ratio for Martinez Company is 50%, sales were $726,000, and fixed costs were $254,100, what was the operating income? $