Strait Co Manufactures Office Furniture

Multiple Choice

Strait Co. manufactures office furniture. During the most productive month of the year, 3,000 desks were manufactured at a total cost of $59,000. In the month of lowest production the company made 1,125 desks at a cost of $38,000. Using the high-low method of cost estimation, total fixed costs are

A) $21,000
B) $25,400
C) $42,000
D) $13,000