Palm,which Uses the High-Low Method,had an Average Cost Per Unit

question 16

Multiple Choice

Palm,which uses the high-low method,had an average cost per unit of $50 at its lowest level of activity when sales equaled 1,000 units and an average cost per unit of $32.50 at its highest level of activity when sales equaled 2,000 units.Palm would estimate fixed costs as:

• A)$30.00
• B)$82.50
• C)$17,500
• D)$35,000

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Definitions:

Local Transport

Transportation services operating within a particular region or city, typically involving buses, trams, and local trains.

Delivery Van

A vehicle used for transporting goods, often belonging to companies offering delivery services of products.

Imperfect Tender

A situation where the goods delivered or services rendered do not fully comply with the specifications or requirements outlined in a contract.

Imperfect Performance

A situation where the performance of a contractual obligation falls short of complete fulfillment.