Carson,which Uses the High-Low Method of Estimating Costs,reported Total Costs

question 3

Multiple Choice

Carson,which uses the high-low method of estimating costs,reported total costs of $24 per unit when production was at its lowest level,at 10,000 units.When production doubled to its highest level,the total cost per unit dropped to $15.Carson would estimate its total fixed cost as:

• A)$9
• B)$33
• C)$180,000
• D)$585,000

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Definitions:

Wedding Preparation Service

A business that offers planning and coordinating services for weddings, including venue selection, catering, and decorations.

Idle Production Capacity

Refers to resources in a manufacturing process that are available but not currently in use, indicating potential wastage or underutilization.

Emergency Room

A specialized department in a hospital that provides immediate treatment for acute illnesses and trauma.

Demand

The quantity of a product or service that consumers are willing and able to purchase at various price points at a given moment.