Meadow Uses the High-Low Method

question 15

Multiple Choice

Meadow uses the high-low method.It had total costs of $500,000 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 $780,000.Meadow would estimate fixed costs as:

• A)$280,000
• B)$300,000
• C)$640,000
• D)$1,200,000