The Following Information Was Available About Supplies Cost for the Second

question 61

Multiple Choice

The following information was available about supplies cost for the second quarter of the year: $$\begin{array} { c c c } \text { Month } & \text { Production Volume } & \text { Supplies Cost } \\\text { July } & 700 & \$ 3,185 \\\text { August } & 1,600 & 7,100 \\\text { September } & 600 & 2,700\end{array}$$ Using the high-low method, the estimate of supplies cost at 1,000 units of production is

• A)$2,700.
• B)$4,460.
• C)$4,900.
• D)$7,100.

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Definitions:

Gray Market

The trade of a commodity through distribution channels that are legal but unintended by the original manufacturer.

Unauthorized Channels of Distribution

Routes to market that are not approved or sanctioned by the original manufacturer or trademark owner, often leading to grey market activities.

Haggling

The act of negotiating the price of a good or service between the buyer and seller, with the intent to agree on a lower price than initially offered.

Economic Infrastructure

The underlying foundation of the economy consisting of physical systems like transportation, communication, and utilities that enable economic activities.