High-Low Method

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
980			$153,720
1,550			164,990
2,380			239,120

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 1,210 units of production.

Total cost for 1,210 units: ______