Total Costs at the Low Point Were $340,000 When 30,000

question 55

Multiple Choice

Total costs at the low point were $340,000 when 30,000 units were produced and total costs at the high point were $400,000 when 40,000 units were produced.Using the high-low method,what are the estimated total costs for a production level of 36,000 units?

• A)$400,000
• B)$240,000
• C)$160,000
• D)$376,000
• E)None of the answer choices is correct.

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Definitions:

AQL

Acceptable Quality Level is a statistical measurement of the maximum number of defective items considered acceptable in a sample size during quality control testing.

LTPD

Lot Tolerance Percent Defective, a quality control measure indicating the highest defect rate in a lot that consumers are willing to tolerate.

Quality Control Chart

A graphic representation of process data over time, used to monitor the quality of processes.