Answer the Following Questions Using the Information Below:
the Frontive

question 11

Multiple Choice

Answer the following questions using the information below:
The Frontive Company has assembled the following data pertaining to certain costs that cannot be easily identified as either fixed or variable. Frontive Company has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation.
$\begin{array}{rr}\text { Cost}&\text { Hours }\\\$ 24,700 & 5,000 \\26,000 & 5,500 \\34,000 & 7,500 \\45,370 & 10,300 \\38,000 & 9,500\end{array}$
-What is the estimated total cost at an operating level of 9,000 hours?

• A) $35,100
• B) $40,300
• C) $44,460
• D) $39,644

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Definitions:

External Users

Individuals and organizations outside a business who use its financial information for decision-making purposes.

Annual Reports

Comprehensive reports issued by companies annually that provide information on their operations, financial condition, and corporate activities.

Job Prospects

The potential opportunities for employment and career advancement in a particular field or profession.

Unlimited Liability

A legal structure in which the owner's personal assets can be used to pay off the business's debts without limit.