Manley Co Manufactures Office Furniture

Multiple Choice

Manley Co. manufactures office furniture. During the most productive month of the year, 4,500 desks were manufactured at a total cost of $86,625. In its slowest month, the company made 1,800 desks at a cost of $49,500. Using the high-low method of cost estimation, total fixed costs are:

A) $61,875
B) $33,875
C) $24,750
D) cannot be determined from the data given