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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