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Georgia uses the high-low method of estimating costs. Georgia had total costs of $39,900 at its lowest level of activity, when 5,100 units were sold.

Georgia uses the high-low method of estimating costs. Georgia had total costs of $39,900 at its lowest level of activity, when 5,100 units were sold. When, at its highest level of activity, sales equaled 13,100 units, total costs were $79,900. Georgia would estimate variable cost per unit as:

Multiple Choice

  • $7.82

  • $6.10

  • $5.00

  • $6.58

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