Reference: 06-06
Johnson Company Has Provided the Following Data for the First

question 28

Multiple Choice

Reference: 06-06
Johnson Company has provided the following data for the first five months of the year: $$\begin{array} { | l | l | l | } \hline & \text { Machine Hours } & \text { Lubrication Cost } \\\hline \text { January } & 120 & \$ 750 \\\hline \text { February } & 160 & \$ 810 \\\hline \text { March } & 200 & \$ 870 \\\hline \text { April } & 150 & \$ 795 \\\hline \text { May } & 170 & \$ 825 \\\hline\end{array}$$
-Using the high-low method of analysis, the estimated variable lubrication cost pe? machine hour is closest to?

• A)$1.25.
• B)$1.50.
• C)$1.40.
• D)$0.67.

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A systematic, empirical approach to research in which a problem is identified, relevant data are gathered, a hypothesis is formulated based on the data, and the hypothesis is empirically tested.

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