Multiple Choice
Davis Ltd has observed that at an activity level of 10 000 units the maintenance cost is $22 000, and at 20 000 units the maintenance cost is $28 000. Using the high-low method, the cost formula for maintenance is:
A) $16 000 + $.60 x units.
B) $16 000 + $.1.54 x units.
C) $6 000 + $.60 x units.
D) $1.40/unit.
Correct Answer:
Verified
Correct Answer:
Verified
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