ABC CoManufactures Pens

question 116

Multiple Choice

ABC Co.manufactures pens.During the most productive month of the year, 3,650 pens were manufactured at a total cost of $84,550.During its slowest month, the company made 1,250 pens at a cost of $46,150.Calculate the total fixed cost using the high-low method of cost estimation.

• A) $25,650
• B) $28,300
• C) $26,150
• D) $27,800

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Definitions:

Insurance Company

A business entity that provides financial coverage to individuals and entities against potential losses or damages in exchange for premium payments.

Insurable Interest

A stake in the value of an entity or thing that provides a legal right or requirement to insure it.

Insurance Contract

A legally binding agreement between an insurance company and the policyholder, specifying the terms for the payment of insurance benefits.

Insuring Property

The act of purchasing insurance to protect against loss or damage to property due to hazards like fire, flood, or theft.