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Business, 06.03.2020 23:42 kgreene405

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
95,000 $28,460,000
110,000 31,010,000
127,000 33,900,000
a) Determine the variable cost per unit and the total fixed cost.
b) Based on part (a), estimate the total cost for 80,000 units of production.

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