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Madison Mulch Company offers bags of natural hardwood mulch and color enhanced mulch. Madison uses the high-low method of estimating costs. Madison had total costs

Madison Mulch Company offers bags of natural hardwood mulch and color enhanced mulch. Madison uses the high-low method of estimating costs. Madison had total costs of $50,000 at its lowest level of activity, when 4,000 bags were sold. When, at its highest level of activity, sales equaled 14.000 bags, total costs were $78,000. Madison would estimate fixed costs as

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