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 Kwan. The company incurs three different cost types (A, B, and C) and has a relevant range of operation between 2,500 units and 7,000 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 $ 23 $ 66 $ 23 $ 112 7,500 units 23 44 22 89 If Shum produces 7,000 units, the total cost would be: Multiple Choice $552,500. $645,000. $646,000. $860,000. None of the answers is correct. PrevQuestion 13 of 20 Total13 of 20Visit question mapNext McGraw Hill

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