Winston Uses the High-Low Method

question 90

Multiple Choice

Winston uses the high-low method.It had an average cost per unit of $10 at its lowest level of activity when sales equaled 10,000 units and an average cost per unit of $6.50 at its highest level of activity when sales equaled 20,000 units.What would Winston estimate its total cost to be if sales equaled 8,000 units?

• A)$24,000
• B)$52,000
• C)$70,000
• D)$94,000

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Definitions:

Managerial Activity

Involves the planning, organizing, leading, and controlling of organizational resources to achieve objectives efficiently and effectively.

Workplace Stressor

Any aspect of the work environment that poses a challenge or threat to an employee's well-being, potentially leading to stress.

Absenteeism

The habitual non-presence of an employee at their job, which can be a sign of poor morale or unsatisfactory work conditions.

Canadian Employees

Individuals working in Canada, contributing to the country's labor force and economy.