Wilson Company's Activity for the First Six Months of the Current

question 9

Multiple Choice

Wilson Company's activity for the first six months of the current year is as follows:
$\begin{array} {| l | r | r | } \hline & \text { Machine Hours } & \text { Electrical Cost } \\\hline \text { January } & 2,000 & \$ 1,560 \\\hline \text { February } & 3,000 & 2,200 \\\hline \text { March } & 2,400 & 1,750 \\\hline \text { April } & 1,900 & 1,520 \\\hline \text { May } & 1,800 & 1,480 \\\hline \text { June } & 2,100 & 1,600\\\hline\end{array}$


-Using the high-low method,what is the fixed portion of the electrical cost each month?

• A) $190.
• B) $280.
• C) $400.
• D) $760.

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Definitions:

Payment

The transfer of money from one party to another as compensation for goods or services or as repayment of a loan.

Invoice

A document issued by a seller to a buyer, detailing products or services provided, prices, and terms of payment.

Cheque

A document that is written, dated, and contains a signature, instructing a bank to pay a certain amount of money to either the person holding it or to an individual named in the document.

Credited

The action of officially recognizing or adding an amount to an account, often referring to the depositing of funds or acknowledgment of income earned.