Multiple Choice
At an activity level of 6,000 units,the cost for maintenance is $7,200;at 10,000 units,the cost for maintenance is $11,600.Using the high-low method,what is the cost formula for maintenance?
A) $1.16 per unit.
B) $1.20 per unit.
C) $600 plus $1.10 per unit.
D) $1,200 plus $1.10 per unit.FC = 11,600 - 10,000 * .75 = $600
Correct Answer:
Verified
Correct Answer:
Verified
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