Question: Palm, which uses the high-low method, had an average cost per unit of $50 at its lowest level of activity when sales equaled 1,000 units

Palm, which uses the high-low method, had an average cost per unit of $50 at its lowest level of activity

when sales equaled 1,000 units and an average cost per unit of $32.50 at its highest level of activity when

sales equaled 2,000 units. Palm would estimate fixed costs as

A. $30.00.

B. $82.50.

C. $17,500.

D. $35,000.

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