Holly CoUses the High-Low Method

question 115

Multiple Choice

Holly Co.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.Holly would estimate fixed costs as:

• A)$70,000
• B)$16.50
• C)$8.25
• D)$100,000

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Definitions:

Afro-Caribbeans

People of African descent living in the Caribbean islands, whose ancestors were primarily brought to the region through the transatlantic slave trade.

African Immigrants

Individuals from Africa who have migrated to other countries around the world, contributing to the cultural, economic, and social diversity of their new communities.

African Americans

An ethnic group in the United States with total or partial ancestry from any of the black racial groups of Africa.

Afro-Caribbean Immigrants

Individuals from the Caribbean region who are of African descent and have relocated to other countries.