You Have Calculated,using the High-Low Method,a Variable Cost Per Machine

Multiple Choice

You have calculated,using the high-low method,a variable cost per machine hour of $0.80 for your production power costs.Power costs at 6,000 machine hours are $5,400;at 9,000 machine hours,they are $7,800.What are the total fixed costs that you would use to estimate production power costs for your company at any level within your relevant range?

A) $600
B) $6,400
C) $2,400
D) $4,800