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McNeil uses the high-low method of estimating costs. McNeil had total costs of $55,000 at its...

McNeil uses the high-low method of estimating costs. McNeil had total costs of $55,000 at its lowest level of activity, when 3,500 units were sold. When, at its highest level of activity, sales equaled 11,500 units, total costs were $77,000. What would McNeil estimate its total cost to be if sales equaled 8,400 units? Multiple Choice $63,875 $68,475 $100,375 $23,100

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Answer #1

Answer: $68,475

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Step 1 - Identifying the highest, lowest activities and costs at the respective activities. X1 = Lowest level of activity = 3

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