solution want from general account tutor Carson, which uses the high-low method of estimatingcosts, reported total costs of $24 per unit whenproduction was at its lowest level, at 10,000 units.When production doubled to its highest level, the totalcost per unit dropped to $15. Carson would estimate thevariable cost per unit?

Step 1: Calculation of cost under low level of productionLow level of production = 10,000 unitsCost…

Answered: Carson, which uses the high-low method…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 16DQ

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Carson, which uses the high-low method of estimating costs, reported total costs of $24 per unit when production was at its lowest level, at 10,000 units. When production doubled to its highest level, the total cost per unit dropped to $15. Carson would estimate the variable cost per unit?