Cardinal Uses the High-Low Method of Estimating Costs

question 30

Multiple Choice

Cardinal uses the high-low method of estimating costs.Cardinal 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 10,000 units,total costs were $39,000.Cardinal would estimate variable cost per unit as:

• A)$7.00
• B)$4.55
• C)$2.80
• D)$5.26

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Definitions:

Conditioning

The process of learning associations between environmental stimuli and behavioral responses, often divided into classical and operant conditioning.

Fears

Emotional responses to perceived threats or dangers, involving a range of physiological and psychological reactions.

Positive Psychologists

Psychologists who focus on studying and promoting aspects of human functioning that lead to happiness, fulfillment, and flourishing.

Abandon

To leave behind completely and finally, forsake utterly; often refers to the act of leaving a place, thing, or person with no intention of returning.