Managerial Accounting

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Using the High-Low Method to Analyze Costs

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In October, Springfield Company sold 15,000 units and had total selling and administrative costs of \$113,000. In November, Springfield Company sold 18,000 units and had total selling and administrative costs of \$134,000.

Based on these two observations, if Springfield planned to produce 17,000 units next month, total selling and administrative costs would be:

A

$\$105,000$

B

$\$119,000$

C

$\$127,000$

D

$\$134,000$