Tucker CoManufactures Office Furniture

Multiple Choice

Tucker Co.manufactures office furniture.During the most productive month of the year, 3,600 desks were manufactured at a total cost of $192,000.In its slowest month, the company made 1,200 desks at a cost of $72,000.Using the high-low method of cost estimation, total fixed costs per month are:

A) $120,000.
B) $12,000.
C) $72,000.
D) $11,600.