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Georgia Uses the High-Low Method of Estimating Costs

Question 22

Multiple Choice

Georgia uses the high-low method of estimating costs.Georgia 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 10,000 units,total costs were $78,000.Georgia would estimate variable cost per unit as:


A) $14.00
B) $9.10
C) $5.60
D) $10.54

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