Exhibit 5-2 Manchester Company Is a Small Company That Has Hired You

Multiple Choice

Exhibit 5-2
Manchester Company is a small company that has hired you to help them estimate costs.They present you with the following information from the company's most recent fiscal year.
Sales (2,000 units) $1,000,000
Cost of goods sold (24% of sales) 240,000
Store supervisor's annual salary 65,000
Annual operating costs 70,000
Annual advertising and promotion 10,000
Sales commissions (5% of sales) 50,000
-Refer to Exhibit 5-2.What type of cost estimation method is being used for Manchester?

A) Regression analysis
B) Scattergraph method
C) Account analysis
D) High-low method
E) None of the answer choices is correct.