Holly CoUses the High-Low Method

Multiple Choice

Holly Co.uses the high-low method.It 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