Cosby Company Is Attempting to Develop the Cost Function for Repair

question 115

Multiple Choice

Cosby Company is attempting to develop the cost function for repair costs. The following past data are available: Machine Hours Repair Costs
4,800 $6,385
3,400 4,585
4,000 5,285
5,900 7,085
Using the high-low method, what is the fixed repair cost?

• A)$1,185
• B)$850
• C)$475
• D)$565

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Definitions:

Equitable Theory

A branch of law that is concerned with fairness and justice, often applied when traditional legal remedies are inadequate.

Donee Beneficiary

A third party who benefits from a contract, although not one of the principals to the contract.

Uniform Commercial Code

A comprehensive set of laws governing commercial transactions in the United States, intended to standardize legal statutes across states.

Sale of Goods

A transaction where the ownership of tangible personal property is transferred from one party to another, usually in exchange for a price.