Citrus,Inc

question 67

Multiple Choice

Citrus,Inc.used the high-low method to estimate that its fixed costs are $210,000.At its low level of activity,100,000 units,average cost was $2.60 per unit.What would Citrus predict its average cost per unit to be when production is 200,000 units?

• A)$1.05
• B)$1.55
• C)$2.60
• D)$5.20

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Definitions:

Baseline

An initial set of measurements or data used as a reference point for future comparison.

Preoperative

Refers to the period or activities occurring before a surgical operation.

Priority

The state or quality of being earlier in time, order, or importance, often used in planning and decision-making.

Venous Stasis

A condition characterized by the pooling of blood in the veins, usually in the legs, because of poor circulation.