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Meadow,which Uses the High-Low Method,had Total Costs of $500,000 at Its

Question 35

Multiple Choice

Meadow,which uses the high-low method,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.

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