FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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 | |||
1,260 | $128,520 | |||
2,130 | 164,220 | |||
3,360 | 199,920 |
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 1,660 units of production.
Total cost for 1,660 units: | $ |
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