Use the Following Information to Answer the Following QuestionsSwan, Inc

question 56

Multiple Choice

Use the following information to answer the following QuestionsSwan, Inc. uses the high-low method to analyze cost behavior. The company observed that at 22,000 machine hours of activity, total maintenance costs averaged $33.40 per hour. When activity jumped to 25,000 machine hours, which was still within the relevant range, the average total cost per machine hour was $30.40.
-On the basis of this information, the fixed cost for Swan was:

• A) $184,800.
• B) $210,000.
• C) $550,000.
• D) $734,800.
• E) $760,000.

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Definitions:

Lowest Cost

Refers to the scenario where a good or service is produced and delivered at the minimum possible expense.

Inputs Available

The resources, such as labor, capital, and materials, that are accessible for production processes.

Production Coordination

The management and alignment of various production activities and processes to ensure efficient output of goods or services.

Industry Safety Regulations

Rules and guidelines established by authorities aimed at ensuring the health and safety of employees within specific sectors.