Maintenance Costs at Red Dot Manufacturing Over the Past Six

Multiple Choice

Maintenance costs at Red Dot Manufacturing over the past six months are listed in the following table. $$\begin{array} { | l | c | c | } \hline \text { Month } & \text { Maintenance cost } & \text { Machine hours } \\\hline \text { January } & \$ 9,500 & 15,800 \\\hline \text { February } & \$ 9,860 & 17,300 \\\hline \text { March } & \$ 8,600 & 14,500 \\\hline \text { April } & \$ 8,840 & 16,100 \\\hline \text { May } & \$ 8,600 & 17,100 \\\hline \text { June } & \$ 8,100 & 15,500 \\\hline\end{array}$$
- Using the high low method,what would the monthly fixed maintenance cost be?

A) $ 1,260
B) $ 2,075
C) $ 7,785
D) $18,460