Use the Following Information to Answer the Next Question(s)

question 85

Multiple Choice

Use the following information to answer the next question(s) .
The following information was collected regarding maintenance costs at different activity levels measured in machine hours:

-Using the cost formula developed under the high-low method, what would be the estimate of maintenance costs if 13,000 machine hours are scheduled for next month

• A) $650,000.
• B) $950,000.
• C) $850,000.
• D) $882,000.

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Definitions:

Milton Friedman

An influential American economist known for his strong belief in free-market capitalism and for winning the Nobel Prize in Economic Sciences in 1976.

Classical Economists

Economists from the 18th and 19th centuries who focused on the free market, advocating for limited government intervention.

Keynesian

Relating to the economic theories of John Maynard Keynes, advocating for increased government expenditures and lower taxes to stimulate demand and pull the global economy out of depression.

Classical

Pertains to the classical school of economic thought, focusing on free markets and the self-regulating nature of economies, emphasizing the roles of competition and supply and demand.