Estimating the total fixed cost


Swazey, which uses the high-low method, reported total costs of $10 per unit at its lowest production level, 5,000 units.

When production tripled to its highest level, the total cost per unit dropped to $5. Swazey would estimate its total fixed cost as :

A. $5

B. $15

C. 50,000

D. $37,500

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Accounting Basics: Estimating the total fixed cost
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