The Connors Company Has Assembled the Following Data Pertaining to Certain

question 40

Multiple Choice

The Connors Company has assembled the following data pertaining to certain costs that cannot be easily identified as either fixed or variable. Connors Company has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation.

What is the estimated total cost at an operating level of 9,000 hours?

• A) $34,200
• B) $38,200
• C) $41,400
• D) $37,800

---

Definitions:

Notes Receivable

Financial assets representing amounts owed to the holder by others, typically arising from selling goods or services on credit.

Long-Term Credit Sales

Sales made on credit with repayment terms extending beyond the standard period, typically over a year or more.

Profitable Credit Sales

Sales made on credit that generate a profit for the company, after accounting for the cost of goods sold and other expenses related to the sale.

Net Realizable Value

The estimated selling price of goods, minus the costs of their sale or disposal, used in accounting to determine the value of an asset in the balance sheet.