Gribble Company's High and Low Level of Activity Last Year

question 122

Multiple Choice

Gribble Company's high and low level of activity last year was 60000 units of product produced in May and 20000 units produced in November. Machine maintenance costs were $156000 in May and $60000 in November. Using the high-low method determine an estimate of total maintenance cost for a month in which production is expected to be 45000 units.

• A) $135000
• B) $144000
• C) $117000
• D) $120000

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Definitions:

Moral Philosophies

The study of moral principles and values that guide behavior in various contexts, concerning what is right and wrong.

Work-Related Decision

A choice or judgment made in the context of one's employment or job responsibilities.

Adam Smith

An 18th-century Scottish economist and philosopher best known for his theories on free market economies, depicted in "The Wealth of Nations."

Profit

The financial gain that is realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.