Lark, which uses the high-low method, had total costs of $25,000 at its lowest level of activity when 5,000 units were sold. When, at its highest level of activity, sales equaled 12,000 units, total costs were $39,000. Lark would estimate fixed costs as:
A. $32,000
B. $60,000
C. $14,000
D. $15,000
Answer: D
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