Lark,which Uses the High-Low Method,had Total Costs of $25,000 at Its

question 62

Multiple Choice

Lark,which uses the high-low method,had total costs of $25,000 at its lowest level of activity when 5,000 units were sold.When,at its highest level of activity,sales equaled 12,000 units,total costs were $39,000.Lark would estimate fixed costs as:

• A)$14,000
• B)$15,000
• C)$32,000
• D)$60,000

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