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

question 140

Multiple Choice

Gribble Company's high and low level of activity last year was 60,000 units of product produced in May and 20,000 units produced in November.Machine maintenance costs were $104,000 in May and $40,000 in November.Using the high-low method, determine an estimate of total maintenance cost for a month in which production is expected to be 45,000 units.

• A)$90,000
• B)$96,000
• C)$78,000
• D)$80,000

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Definitions:

Fault Codes

Diagnostic codes generated by a vehicle's onboard computer indicating specific malfunctions or issues requiring attention.

Electronic Braking System (EBS)

A system in vehicles that uses electronic controls to improve the efficiency and responsiveness of braking.

FMVSS-121 Redundancy

A redundancy requirement specified in the Federal Motor Vehicle Safety Standards (FMVSS) 121, pertaining to the air brake systems in heavy vehicles, ensuring the system’s effectiveness even when part of it fails.

Pneumatic

In truck technology this term is used mainly to describe chassis air under pressure, as in pneumatic brakes or pneumatic suspension.