XYZ Company uses the high low method to analyze the mixed cost. According to the cost formula derived, the total fixed cost is $10,000. Total cost at the high level of activity was $73,000 and at the low level of activity was $25,000. If the low level of activity was 2,500 units, what was the high level of activity in units? Select one: O a. 10,500 O b. 11,500 O c. None of the answers given O d. 7,300 O e. 11,000

XYZ Company uses the high low method to analyze the mixed cost. According to the cost formula derived, the total fixed cost is $10,000. Total cost at the high level of activity was $73,000 and at the low level of activity was $25,000. If the low level of activity was 2,500 units, what was the high level of activity in units? Select one: O a. 10,500 O b. 11,500 O c. None of the answers given O d. 7,300 O e. 11,000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 24E: Busy-Bee Baking Company produces a variety of breads. The average price of a loaf of bread is 1....

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