An Analysis of Past Maintenance Costs Indicates That Maintenance Cost

question 56

Multiple Choice

An analysis of past maintenance costs indicates that maintenance cost is an average of $0.20 per machine-hour at an activity level of 10,000 machine-hours and $0.25 per machine-hour at an activity level of 8,000 machine-hours. Assuming that this activity is within the relevant range, what is the total expected maintenance cost if the activity level is 8,700 machine-hours?

• A)$400.
• B)$2,250.
• C)$1,740.
• D)$2,000.

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Definitions:

Psychosurgery

A type of brain surgery, such as lobotomy, used to treat mental disorders by removing or altering tissues of the brain.

Lobotomy

A neurosurgical procedure, historically used to treat mental disorders by severing connections in the brain's prefrontal cortex.

Benzodiazepines

A class of psychoactive drugs used to treat conditions such as anxiety, insomnia, and seizures by enhancing the effect of the neurotransmitter GABA.

Tranquilizer

Drugs used to reduce tension or anxiety; they can vary in strength and effects, from mild sedatives to powerful antipsychotic medications.