11:21 AM v2.cengagenow.com ?+ Sneakers... Jeans-To... Does Diet... Blackboar...

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11:21 AM v2.cengagenow.com ?+ Sneakers... Jeans-To... Does Diet... Blackboar... Cengage Ocengag- Sign in-C Ramirez C- 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 80,000 92,000 120,000 Total Costs $25,100,000 27,206,000 32,120,000 a. Determine the variable cost per unit and the total fixed cost. Variable cost (Round to two decimal places.) Total fixed cost b. Based on part (a), estimate the total cost for 115,000 units of production, Total cost for 115,000 units per unit Previous Next Check My Work All work saved. Email Instructor Save and Exit Submit Assignment for Grading

Explanation / Answer

1 Variable Cost = Diffirent in variable cost/ Different in Units Produced 32120000-25100000/120000-80000 175.5 Per unit Total Fixed cost 11060000 175.5*80000-25100000 Total cost - Total variable cost = total fixed cost Total cost - (variable cost per unit x units produced) = fixed cost 2 Total cost for 115000 units Variable cost 175.5*115000 20182500 Fixed cost 11060000 Total Cost 31242500

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