Highland Rose Ltd Is Attempting to Develop the Cost Function

question 16

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 estimated repair cost for 4,500 machine hours?

• A) $5,785
• B) $5,585
• C) $5,985
• D) $5,685

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Definitions:

Consolidated Financial Statements

Financial reports that aggregate all financial information of a parent company and its subsidiaries, showing the group's overall financial performance and position.

Parent's Share

The portion of equity interest in a subsidiary held by the parent company, reflecting its claim on the subsidiary's assets and income.

Unrealized Profits

Profits that have been recognized in the accounting records but have not yet been realized through the receipt or payment of cash or other assets.

Inventory

The total amount of goods and materials held by a company for the purpose of sale or production.