Answer the Following Questions Using the Information Below:
Presented Below

question 26

Multiple Choice

Answer the following questions using the information below:
Presented below are the production data for the first six months of the year for the mixed costs incurred by Vertise Company.
$$\begin{array} { l r r } \text { Month } & \text { Cost } & \text { Units } \\\text { January } & \$ 4,890 & 4,100 \\\text { February } & 4,426 & 3,520 \\\text { March } & 6,730 & 5,200 \\\text { April } & 9,724 & 8,250 \\\text { May } & 5,900 & 4,900 \\\text { June } & 7,336 & 6,600\end{array}$$ Vertise Company uses the high-low method to analyze mixed costs.
-What is the estimated total cost at an operating level of 6,500 units?

• A) $7,752.44
• B) $7,764.00
• C) $7,280.00
• D) $7,661.33

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Definitions:

Persons

Human beings as individuals or considered collectively, especially in a legal or formal context.

Capital Account

An account used to track the investments made into a company by its owners, plus the retained earnings of the business.

Withdrawal Account

An account used in partnership accounting to record the amounts drawn out of the business by the partners for personal use.

Relative Ease

The level of simplicity or difficulty with which a task can be completed when compared to other tasks.