Given the Following Cost and Activity Observations for Notwen Company's

question 152

Multiple Choice

Given the following cost and activity observations for Notwen Company's maintenance costs,use the high-low method to calculate Notwen's monthly fixed costs for maintenance. $$\begin{array} { c c r } & \text { Cost } & \text { Units Produced } \\\text { January } & \$ 130,000 & 25,000 \\\text { February } & 180,500 & 35,000 \\\text { March } & 151,100 & 28,000 \\\end{array}$$

• A) $11,250
• B) $4,550
• C) $3,750
• D) $2,650

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Definitions:

Confidence Interval

A spectrum of numbers, obtained from sampled evidence, which is expected to encompass the magnitude of an undetermined population statistic.

Standard Deviation

A measure that quantifies the spread of a dataset around its mean, determined by taking the square root of the variance.

Confidence Interval

A bracket of numbers, taken from the study of a sample, poised to contain the value of a not-identified population parameter.

Standard Deviation

A statistical measure that represents the dispersion or variability of a set of data points around their mean.