Highland Rose Ltd Is Attempting to Develop the Cost Function

question 108

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 fixed repair cost?

• A) $475
• B) $850
• C) $1,185
• D) $565

---

Definitions:

Competitive Advantage

The unique attributes or capabilities that allow an organization to outperform its competitors, resulting in greater sales, margins, and customer loyalty.

Economic Responsibility

The obligation of an individual, organization, or government to optimize the economic impact of its decisions on stakeholders and society at large.

Creditors

Individuals or entities to whom money is owed by a debtor or borrower.

Social Responsibility Pyramid

A framework used to depict how a business should prioritize its responsibilities, from basic economic functions to ethical duties.