At an Activity Level of 6,000 Units,the Cost for Maintenance

question 8

Multiple Choice

At an activity level of 6,000 units,the cost for maintenance is $7,200;at 10,000 units,the cost for maintenance is $11,600.Using the high-low method,what is the cost formula for maintenance?

• A) $1.16 per unit.
• B) $1.20 per unit.
• C) $600 plus $1.10 per unit.
• D) $1,200 plus $1.10 per unit.FC = 11,600 - 10,000 * .75 = $600

---

Definitions:

Protectionism

A call for tariffs and favourable treatments to protect domestic firms from foreign competition.

Foreign Competition

The presence of competitors from other countries in a domestic market, highlighting the global nature of the market and challenges for local firms.

Tariffs

Taxes imposed on imported or, less commonly, exported goods, used by governments to regulate trade, protect domestic industries, or generate revenue.

Importing Products

The business activity of bringing goods or services into one country from another to sell them.