Swofford Inc

question 20

Essay

Swofford Inc. has provided the following data concerning its maintenance costs:
Management believes that maintenance cost is a mixed cost that depends on machine-hours.
Required:
Estimate the variable cost per machine-hour and the fixed cost per month using the high-low method. Show your work!

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Definitions:

Import Automobiles

The act of bringing cars into a country from abroad for use or sale.

Gains From Trade

The benefit that economies and individuals receive from the voluntary exchange of goods and services beyond what they could produce themselves.

Tariff Revenue

Tariff Revenue is the income generated from duties imposed by a government on imported goods, which is often used as a tool for economic policy.

International Specialization

The economic strategy of a country focusing its resources on producing goods and services it can produce most efficiently for exchange with others.