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Georgia uses the high-low method of estimating costs. Georgia had total costs of $26,800 at its...

Georgia uses the high-low method of estimating costs. Georgia had total costs of $26,800 at its lowest level of activity, when 5,600 units were sold. When, at its highest level of activity, sales equaled 17,600 units, total costs were $82,600. Georgia would estimate variable cost per unit as: Multiple Choice $4.72 $4.65 $4.79 $4.69

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Answer #1
Cost Units sold
High activity 82600 17600
Low Activity 26800 5600
Change 55800 12000
Vc per unit = Change in cost / Change in Units
55800 /12000 = $ 4.65 per unit
Answer is $ 4.65
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