Reference: 06-08
Wilson Company's Activity for the First Six Months

Multiple Choice

Reference: 06-08
Wilson Company's activity for the first six months of the current year is as follows: $$\begin{array} { | l | l | l | } \hline & \text { June } & \text { July } \\\hline \text { Activity level in units } & 10,000 & 20,000 \\\hline & & \\\hline \text { Variable costs } & \$ 20,000 & \$ ? \\\hline \text { Fixed costs } & 15,000 & ? \\\hline \text { Mixed costs } & 10,000 & ? \\\hline \text { Total costs } & \$ 45,000 & \$ 70,000 \\\hline\end{array}$$
-Using the high-low method, the fixed portion of the electrical cost each month would be

A) $190.
B) $760.
C) $400.
D) $280.