Problemmcneil uses the high-low method of estimating costs, Ask an Expert

Accounting

Problem:

McNeil uses the high-low method of estimating costs. McNeil had total costs of $50,000 at its lowest level of activity, when 5,000 units were sold. When, at its highest level of activity, sales equaled 12,000 units, total costs were $78,000.

Required:

Question: What would McNeil estimate its total cost to be if sales equaled 8,000 units?

Note: Please show how to work it out.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91165793

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