Buckeye Company Has Provided the Following Data for Maintenance Cost

question 79

Multiple Choice

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

• A) $7,000 per year plus $0.625 per machine hour.
• B) $7,000 per year plus $1.60 per machine hour.
• C) $21,625 per year plus $0.625 per machine hour.
• D) $27,000 per year plus $1.60 per machine hour.FC = 31,000 - 15,000 * 1.60 = $7,000

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Definitions:

Collect

To gather or accumulate items or amounts, typically for a specific purpose or collection.

Like Terms

In algebra, terms that have the same variable raised to the same power, which can be combined by addition or subtraction.

Simplify

Reducing complexity to achieve clarity in problem-solving or communication.

Operation Indicated

A specific mathematical operation that is suggested or required by the context or problem.