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At an Activity Level of 6,000 Units the Cost for Maintenance

Question 98

Multiple Choice

At an activity level of 6,000 units the cost for maintenance is $7,200 and at 10,000 units the cost for maintenance is $11,600. Using the high-low method, the cost formula for maintenance is:


A) $1.20 per unit
B) $1.16 per unit
C) $1,200 plus $1.10 per unit
D) $600 plus $1.10 per unit

Correct Answer:

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