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Lark uses the high-low method to estimate costs. During Larks lowest activity month, 5,000 units were sold and total costs were $25,000. During Larks highest

Lark uses the high-low method to estimate costs. During Larks lowest activity month, 5,000 units were sold and total costs were $25,000. During Larks highest activity month, sales equaled 12,000 units and total costs were $39,000. Larks estimated fixed costs are

24000

60000

15000

or

39000

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