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

Multiple Choice

Cypress,which uses the high-low method,had an average cost per unit of $5 at its lowest level of activity when sales equaled 10,000 units and an average cost per unit of $3.25 at its highest level of activity when sales equaled 24,000 units.Cypress would estimate fixed costs as:

A) $30,000
B) $6.25
C) $1.75
D) $50,000