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

Multiple Choice

Holly,which uses the high-low method,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.Holly would estimate fixed costs as

A) $70,000.
B) $16.50.
C) $8.25.
D) $100,000.