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

question 129

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 total fixed cost as:

• A)$5
• B)$15
• C)$50,000
• D)$37,500

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