Estimate the total cost by high-low method


Response to the following problem:

Ajax, which uses the high-low method, had average costs per unit of $10 at its lowest level of activity when sales equaled 10,000 units and average costs per unit of $6.50 at its highest level of activity when sales equaled 24,000 units. What would Ajax estimate its total cost to be if sales equaled 8,000 units?

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Cost Accounting: Estimate the total cost by high-low method
Reference No:- TGS02079165

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