Question: Holly Co uses the high-low method. It had an average cost per unit of $10 at its lowest level of activity when sales equaled 15,000

Holly Co uses the high-low method. It had an average cost per unit of $10 at its lowest level of activity when sales equaled 15,000 units and an average cost per unit of $6.00 at its highest level of activity when sales equaled 30,000 units. Holly would estimate fixed costs as:

a) $8

b) $150,000

c) $120,000

d) $16

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