Wuensch Incorporated, an Escrow Agent, Has Provided the Following Data

question 71

Multiple Choice

Wuensch Incorporated, an escrow agent, has provided the following data concerning its office expenses: Management believes that office expense is a mixed cost that depends on the number of escrows completed. Note: Real estate purchases usually involve the services of an escrow agent that holds funds and prepares documents to complete the transaction.Using the high-low method, the estimate of the variable component of office expense per escrow completed is closest to:

• A) $45.44
• B) $42.76
• C) $88.22
• D) $131.00

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Definitions:

Cumulative Total Product

The total output produced by a firm over a given period, adding up all units of product made.

Migration

The movement of people from one area to another, either within a country or across borders, for the purpose of settling temporarily or permanently in a new location.

Wage Rate

The amount of compensation paid to an employee per unit of time or per task completed.

Wage Rate

The standard amount of pay given for work performed, typically expressed as an hourly rate or annual salary.