Sparrow,Inc

question 70

Multiple Choice

Sparrow,Inc.used the high-low method to estimate that its fixed costs are $105,000.At its low level of activity,50,000 units,average cost was $2.60 per unit.What would Sparrow predict as its variable cost per unit?

• A)$0.50
• B)$1.55
• C)$2.10
• D)$2.60

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Definitions:

High Normal Reading

Refers to a measurement or test result that is at the upper limit of the normal range, potentially indicating an increased risk for a condition or the need for closer monitoring.

Middle-Aged Adult

A person who is in the middle stage of life, typically considered to be between the ages of 40 and 65.

Older Person

An individual who has reached an advanced stage of life, often characterized by increased experience, wisdom, and sometimes, challenges related to aging.

Chest Discomfort

A symptom that can manifest as pain, pressure, or tightness in the chest area, potentially indicative of cardiovascular problems or other health issues.