Northlake,Inc

question 51

Multiple Choice

Northlake,Inc. ,uses the high-low method to analyze cost behavior.The company observed that at 20,000 machine hours of activity,total maintenance costs averaged $10.50 per hour.When activity jumped to 24,000 machine hours,which was still within the relevant range,the average total cost per machine hour was $9.75.On the basis of this information,the company's fixed maintenance costs were:

• A)$24,000.
• B)$90,000.
• C)$210,00.
• D)$234,000.
• E)an amount other than those listed abovE.

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Definitions:

Financial Statements

Documents that provide an overview of a business or individual's financial condition in a specific period, including balance sheets, income statements, and statements of cash flows.

Decision Making

A process of selecting the best option among multiple alternatives to achieve an objective or a solution to a problem.

Net Income

A financial term representing the profit left after all expenses, taxes, and costs have been subtracted from total revenue.

Income

Money received, especially on a regular basis, for work or through investments.