Question: General accounting question Carter Manufacturing, which uses the high-low method, had total costs of $30,000 at its lowest activity level when 6,000 units were sold.

General accounting question

Carter Manufacturing, which uses the high-low method, had total costs of $30,000 at its lowest activity level when 6,000 units were sold. At its highest level of activity, sales equaled 14,000 units, and total costs were $48,000. Using the high- low method, what is the estimated fixed cost? a. $12,000 b. $15,000 c. $18,000 d. $20,000

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