Production in 2013 for California Manufacturing, a Producer of High

Multiple Choice

Production in 2013 for California Manufacturing, a producer of high security bank vaults, was at its highest point in the month of June when 80 units were produced at a total cost of $800,000. The lowest point in production was in January when only 20 units were produced at a cost of $440,000. The company is preparing a budget for 2013 and needs to project expected fixed cost for the budget year. Using the high/low method, the projected amount of fixed cost per month is:

A) $120,000
B) $320,000
C) $480,000
D) $360,000