Question: 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.

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 ProducedTotal Costs
4,800

$376,320
1,600

241,920
3,070

272,030

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

Variable cost: (Round to the nearest dollar.)$fill in the blank 1 per unit
Total fixed cost:$fill in the blank 2

b. Based on part (a), estimate the total cost for 2,300 units of production.

Total cost for 2,300 units:$fill in the blank 3

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