Winston Uses the High-Low Method

question 90

Multiple Choice

Winston 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.What would Winston estimate its total cost to be if sales equaled 8,000 units?

• A)$24,000
• B)$52,000
• C)$70,000
• D)$94,000

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Definitions:

Proposition

A statement or expression that presents an idea, opinion, or claim, typically one that can be true or false.

Conclusion

The final part of something, typically a process, argument, or statement, drawn from premises.

Premise

A statement or proposition from which another is inferred or follows as a conclusion.

Conclusion

The final part of something, such as an argument or a research paper, summarizing the findings or restating the main point.