Winston Uses the High-Low Method

Multiple Choice

Winston 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.What would Winston estimate its total cost to be if sales equaled 8,000 units?

A) $24,000
B) $52,000
C) $70,000
D) $94,000