The high-low method calculates the total fixed cost as the

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The high-low method calculates the total fixed cost by first finding the variable cost per unit (change in cost divided by the change in activity level for two points) and then using this to calculate the total fixed cost as the difference between total costs and total variable costs at a particular activity level. However, the correct definition of the high-low method was not provided in the options as described, leading to a misunderstanding in the explanation. The high-low method actually involves identifying the highest and lowest levels of activity and their corresponding total costs to estimate the variable cost per unit and the total fixed costs. None of the options accurately describe this process.

The High-Low Method Calculates the Total Fixed Cost as the