At an Activity Level of 6,000 Units the Cost for Maintenance

question 74

Multiple Choice

At an activity level of 6,000 units the cost for maintenance is $7,200 and at 10,000 units the cost for maintenance is $11,600. Using the high-low method, the cost formula for maintenance is?

• A)$1,200 plus $1.10 per unit.
• B)$600 plus $1.10 per unit.
• C)$1.16 per unit.
• D)$1.20 per unit.

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Definitions:

Bretton Woods Agreement

A 1944 agreement that established fixed foreign exchange rates for major currencies, as well as the IMF and the World Bank.

Gold Standard

A monetary arrangement where the valuation of a country's currency or paper bills is pegged directly to gold.

Bretton Woods System

was a monetary order established in 1944, which set up fixed exchange rates, the International Monetary Fund (IMF), and the World Bank to regulate international financial and monetary affairs.

U.S. Dollar

The official currency of the United States, widely used as a global reserve currency.