Carter Manufacturing, which uses the high-low method, had total costs of $30,000 at its lowest activity level when 6,000 units were sold. At its highest level of activity, sales equaled 14,000 units, and total costs were $48,000. Using the high- low method, what is the estimated fixed cost? a. $12,000 b. $15,000 c. $18,000 d. $20,000
Carter Manufacturing, which uses the high-low method, had total costs of $30,000 at its lowest activity level when 6,000 units were sold. At its highest level of activity, sales equaled 14,000 units, and total costs were $48,000. Using the high- low method, what is the estimated fixed cost? a. $12,000 b. $15,000 c. $18,000 d. $20,000
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 11MC: Total costs for ABC Distributing are $250,000 when the activity level is 10,000 units. If variable...
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What is the estimated fixed cost ?

Transcribed Image Text:Carter Manufacturing, which uses the high-low method, had total costs of $30,000
at its lowest activity level when 6,000 units were sold. At its highest level of
activity, sales equaled 14,000 units, and total costs were $48,000. Using the high-
low method, what is the estimated fixed cost?
a. $12,000
b. $15,000
c. $18,000
d. $20,000
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