Carson,which Uses the High-Low Method of Estimating Costs,reported Total Costs

question 3

Multiple Choice

Carson,which uses the high-low method of estimating costs,reported total costs of $24 per unit when production was at its lowest level,at 10,000 units.When production doubled to its highest level,the total cost per unit dropped to $15.Carson would estimate its total fixed cost as:

• A)$9
• B)$33
• C)$180,000
• D)$585,000

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Definitions:

Current Flow

The movement of electric charge carriers, such as electrons, through a conductor or circuit.

Ohm's Law

A fundamental principle of electricity stating that the current through a conductor between two points is directly proportional to the voltage across the two points.

Dielectric

Something that limits or blocks current flow. Nonconducting dielectric material is used between poles in a capacitor and dielectric grease can be used to protect exposed terminals.

Conductors

Materials that allow the flow of electrical current, commonly used in electrical wiring and electronics for the transmission of electricity.