Presented Below Is the Production Data for Six Months of the Year

question 116

Multiple Choice

Presented below is the production data for six months of the year showing the mixed costs incurred by Madeline Company.
$\begin{array}{lll}\text { Month }&\text { Cost }&\text { Units }\\\text { July } & \$ 6,000 & 4,000 \\\text { August } & \$ 11,250 & 9,500 \\\text { September } & \$ 11,500 & 9,000 \\\text { October } & \$ 11,700 & 10,500 \\\text { November } & \$ 14,000 & 12,000 \\\text { December } & \$ 12,850 & 10,000\end{array}$
Madeline Company uses the high-low method to analyze mixed costs.The predicted total cost at an operating level of 10,000 units is ________.

• A) $11,725
• B) $11,800
• C) $12,000
• D) $12,850

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Definitions:

Interim Financial Reports

Financial statements that are issued for a period shorter than the fiscal year, such as quarterly or semi-annually, to provide timely information to investors.

Integral Approach

A comprehensive method that combines various perspectives, methodologies, or systems to address complex situations or problems.

Interim Financial Reports

Financial statements that cover a period shorter than a fiscal year, providing an ongoing view of a company's financial health.