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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