Mathematics · High-Low Method Cost Estimation
JP has recorded the following distribution costs during the last three months: - Month 1: 32,000 units, Total cost: $100,000 - Month 2: 40,000 units, Total cost: $120,000 - Month 3: 50,000 units, Total cost: $145,000 Using the high-low method, what will be the distribution costs (to the nearest $) in month 4 when the expected activity level is 42,500 units?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1$132,813
- 2$129,861
- 3$127,500
- 4$126,250✓
Correct answer
$126,250
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