Answer:
Ziegler Inc.
a) The variable cost per unit = $60
b) The total fixed cost = $30,000
c) The total cost for 1,660 units = $129,600
Explanation:
a) Production Data and Calculations:
Units       Total
Produced   Costs
3,300 Â Â Â Â $168,000
1,300 Â Â Â Â Â 108,000
2,390 Â Â Â Â Â 149,040
High-low method:
High 3,300 Â Â Â Â $168,000
Low  1,300      108,000
Diff. Â 1,000 Â Â Â Â Â $60,000
Variable cost = $60 ($60,000/1,000)
Fixed cost = $30,000 ($108,000 - ($60 * 1,300)
Total cost for 1,660 units:
Variable costs = $99,600 ($1,660 * $60)
Fixed cost = Â Â Â Â Â 30,000
Total costs = Â Â $129,600
