Highland Rose Ltd Is Attempting to Develop the Cost Function

question 88

Multiple Choice

Highland Rose Ltd is attempting to develop the cost function for repair costs. The following past data are available: $$\begin{array} { c c } \underline{\text { Machine Hours }} &\underline{ \text { Repair Costs }} \\4,800 & \$ 6,385 \\3,400 & 4,585 \\4,000 & 5,285 \\5,900 & 7,085\end{array}$$ Using the high-low method, what is the variable repair cost per machine hour?

• A) $1.00
• B) $0.15
• C) $4.00
• D) $5.00