Bell Company Has Provided the Following Data for Maintenance Costs

question 29

Multiple Choice

Bell Company has provided the following data for maintenance costs:
Using the high-low method,what is the cost formula for maintenance cost?

• A) $2.00 per machine hour.
• B) $1.625 per machine hour.
• C) $18,000 plus $0.50 per machine hour.
• D) $24,000 plus $0.50 per machine hour.FC = 26,000 - 16,000 * .5 = $18,000.

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Definitions:

Dichotomous

A characteristic of variables that can take on exactly two distinct and mutually exclusive values.

Level Of Measurement

The classification of data based on the nature and the mathematical properties of the data values, such as nominal, ordinal, interval, and ratio scales.

Nominal

Refers to categorical data that can be categorized but not ranked or ordered in a meaningful way.

Level Of Measurement

The scale or type of data that determines the kind of statistical analysis that can be used.