Carson,which Uses the High-Low Method,reported Total Costs of $24 Per

question 33

Multiple Choice

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

• A)$9.00
• B)$6.00
• C)$11.00
• D)($9.00)

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Definitions:

Magic Number

A concept in cognitive science referring to the limit of items an average human mind can hold in working memory, commonly thought to be seven plus or minus two.

Working Memory

An active system that processes the information in short-term memory.

Central Executive

A component of working memory model that oversees and regulates the flow of information from and to its subsidiary systems.

Baddeley

A reference to Alan Baddeley, a psychologist best known for his work on the model of working memory.