Cotton Company produces and sells socks. Variable costs are budgeted at $4 per pair, and fixed costs for the year are expected to total $60,000. The selling price is expected to be $6 per pair.

The sales units required for Cotton Company to make a before-tax profit (_B) of $19,000 are:

Multiple Choice

• 40,500 units.

• 38,500 units.

• 34,500 units.

• 40,000 units.

• 39,500 units.

Why use the high-low method?

Multiple Choice

• It is the most accurate.

• It is easiest to understand and apply.

• It is the least accurate.

• It requires more expertise.

• It has greater computational complexity.

Why use the high-low method?

Multiple Choice

• It is the most accurate.

• It is easiest to understand and apply.

• It is the least accurate.

• It requires more expertise.

• It has greater computational complexity.