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

Yang Manufacturing, which uses the high-low method, makes a product called Yin. The company incurs three different cost types (A, B, and C) and has a relevant range of operation between 2,500 units and10,000 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

5000 units

$4

$9

$4

$17

$

7500

units

$4

$6

$3

$13

Yang produces 10,000 units, the total cost would be:

A.$90,000.

B.$100,000.

C. $110,000.

D.$125,000.

E.an amount other than those given above.

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