In Applying the High-Low Method, What Is the Fixed Cost

question 1

Multiple Choice

In applying the high-low method, what is the fixed cost? $\begin{array}{llr}\text { Month}& \text { Miles }& \text { Total Cost }\\\hline\text { January } & 80,000 & \$ 192,000 \\\text { February } & 50,000 & 160,000 \\\text { March } & 70,000 & 188,000 \\\text { April } & 90,000 & 260,000\end{array}$

• A)$35,000
• B)$72,000
• C)$28,000
• D)$100,000

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Definitions:

Branch Plants

Secondary factories or operations set up by a company away from its main premises, often in different geographical locations.

Short Run

A period during which at least one factor of production is fixed, limiting the ability to adjust to changes in market demand.

Barriers to Entry

Barriers that impede or block new entrants from smoothly accessing a market or business sector.

Plant Size

Plant size refers to the capacity or physical dimensions of a facility where goods are produced, impacting the volume of production and potential economies of scale.