To Follow Is Information About the Units Produced and Total

question 139

Multiple Choice

To follow is information about the units produced and total manufacturing costs for Pine Enterprises for the past six months. Using the high-low method, what is the monthly fixed manufacturing cost?

• A)$3,900
• B)$14,650
• C)$1,650
• D)$4,250

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Definitions:

Implied Warranties

Legal guarantees automatically granted to a purchaser by law, ensuring that a product meets certain minimum quality standards.

Course of Performance

The conduct between parties to a contract that indicates what they consider acceptable performance under the contract's terms.

Course of Dealing

A history of past interactions between contractual parties that forms a mutual foundation for their agreement.

Breach of Warranty

A violation of a guarantee or promise made about the quality or durability of a product or service.