McNeil Uses the High-Low Method of Estimating Costs

Multiple Choice

McNeil uses the high-low method of estimating costs.McNeil had total costs of $50,000 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 $78,000.What would McNeil estimate its total cost to be if sales equaled 8,000 units?

A) $32,000
B) $52,000
C) $62,000
D) $80,000