Fremont,which Uses the High-Low Method,reported Total Costs of $10 Per

question 52

Multiple Choice

Fremont,which uses the high-low method,reported total costs of $10 per unit at its lowest production level,5,000 units.When production tripled to its highest level,the total cost per unit dropped to $5.Fremont would estimate its variable cost per unit as

• A)$2.50.
• B)$5.00.
• C)$15.00.
• D)negative $0.0005.

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Definitions:

Sales Position

A role within a company that focuses on promoting and selling the company’s products or services to customers.

Territory

An area of land under the jurisdiction of a ruler or state, or in commercial terms, designated geographic boundaries assigned to sales representatives or distributors.

Ethical Problems

are dilemmas or situations that require a choice to be made between actions that are right or wrong according to moral principles.

Corporate Sales Policies

Guidelines and principles set by a corporation to standardize and direct its sales practices, ensuring coherence and efficiency in sales operations.