Winston uses the high-low method. it had an average cost per unit of $10 at its lowest level of activity when sales equaled 10,000 units and an average cost per unit of $6.50 at its highest level of activity when sales equaled 20,000 units. what would winston estimate its total cost to be if sales equaled 8,000 units?

 $94,000

Explanation:

At 10,000 units;

total cost = $10,000 × 10  

               = $100,000

At 20,000 units,

Total cost = 20,000 × 6.5

               = $130,000

Variable cost per unit using high low method:

     = $3 per unit

Hence,

Total fixed costs = Total cost at 20,000 units - (No. of units ×  Variable cost per unit)

= $130,000 - (20,000 × 3)

= $70,000

Hence total cost at 8000 units = (No. of units ×  Variable cost per unit) + Total fixed costs

= (8000 × 3) + 70,000

= $94,000

net worth is the difference between what you own and what you have. if you exceed your liabilities you have a positive net worth. if your liabilities are greater than your assets you have a negative net worth. its a snapshot of your financial situation. if you calculate your net worth you will see the end result of everything you've earned and spent as of now. net worth statements and all you asked of can you determine where you are, how to get where you want to be, if your spending   to much. honestly it can tell you a lot of things. i can go on, but you can paint the picture from here.

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