In Applying the High-Low Method What Is the Fixed Cost

question 115

Multiple Choice

In applying the high-low method what is the fixed cost? $\begin{array}{lcr}\text { Month } & \text { Miles } & \text { Total Cost } \\\hline \text { January } & 80,000 & \$ 192,000 \\\text { February } & 50,000 & 160,000 \\\text { March } & 70,000 & 188,000 \\\text { April } & 90,000 & 260,000\end{array}$

• A)$35000
• B)$72000
• C)$28000
• D)$100000

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Definitions:

Investments-Evans Company Bonds

Specific long-term investments made in the bonds issued by Evans Company.

Treasury Bonds

Long-term government securities issued with a fixed interest rate and maturity of generally more than 10 years.

Brokerage Commission

The charge imposed by a broker for conducting trades or offering specific services.

Interest Revenue

Income earned from lending funds or depositing funds in interest-bearing accounts, often reported as part of non-operating income.