Question: Shum Manufacturing, which uses the high-low method, makes a product called Kwan. The company incurs three different cost types (A, B, and C) and has

Shum Manufacturing, which uses the high-low method, makes a product called

Shum Manufacturing, which uses the high-low method, makes a product called Kwan. The company incurs three different cost types (A, B, and C) and has a relevant range of operation between 2,500 units and 10,000 units per month. Per-unit costs at two different activity levels for each cost type are presented below. Type A Type B Type C Total 5,000 units $9 $24 $9 $42 7,500 units 9 16 8 33 If Shum produces 10,000 units, the total cost would be: Multiple Choice O $165,000. O $150,000. O $285,000. O $225,000. O None of the answers is correct

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