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Georgia uses the high-low method of estimating costs. Georgia had total costs of $8,850 at its lowest level of activity, when 5,800 units were sold.

Georgia uses the high-low method of estimating costs. Georgia had total costs of $8,850 at its lowest level of activity, when 5,800 units were sold. When, at its highest level of activity, sales equaled 16,900 units, total costs were $81,000. Georgia would estimate variable cost per unit as:

$1.53

$6.50

$4.79

$3.96

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