Cypress,which Uses the High-Low Method,had an Average Cost Per Unit

question 40

Multiple Choice

Cypress,which uses the high-low method,had an average cost per unit of $5 at its lowest level of activity when sales equaled 10,000 units and an average cost per unit of $3.25 at its highest level of activity when sales equaled 24,000 units.Cypress would estimate fixed costs as:

• A)$30,000
• B)$6.25
• C)$1.75
• D)$50,000

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Definitions:

Executive Control System

A cognitive system that manages higher-order brain functions, including problem-solving, planning, memory, and attention regulation.

Working Memory

The part of short-term memory that is concerned with immediate conscious perceptual and linguistic processing.

Monitor

A device or individual that observes, checks, and keeps a continuous record of a process or situation.

Sensory Memory

The shortest-term element of memory, it allows the ability to retain impressions of sensory information after the original stimuli have ended.