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
103,500			$30,281,500
114,500			32,360,500
129,500			35,195,500

This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.

Open spreadsheet

1. Determine the variable cost per unit and the total fixed cost. Round your answer for variable cost to the nearest cent. Round your answer for total fixed costs to the nearest dollar.

   Variable cost:	$fill in the blank 2 per unit
   Total fixed cost:	$fill in the blank 3

2. Based on part (a), estimate the total cost for 84,000 units of production. Round your answer to the nearest dollar.

   Total cost for 84,000 units:

   $fill in the blank 4