If the Tudor Retailing Company uses the high-low method of analysis, the total selling and administrative expense if Tudor Retailing Company sells 6,500 units during a month would be estimated to be:
A)$37,000
B)$44,850
C)$38,250
D)$36,679

Question

Quizplus · Accepted Answer

The high-low method involves taking the highest and lowest activity levels and their associated costs to determine variable cost per unit and fixed costs. Using these, the total cost for 6,500 units can be estimated.

If the Tudor Retailing Company Uses the High-Low Method of Analysis