Cardillo Inc

question 94

Multiple Choice

Cardillo Inc., an escrow agent, has provided the following data concerning its office expenses: Management believes that office expense is a mixed cost that depends on the number of escrows completed. Note: Real estate purchases usually involve the services of an escrow agent that holds funds and prepares documents to complete the transaction.
Using the high-low method, the estimate of the fixed component of office expense per month is closest to:

• A)$9,606
• B)$13,485
• C)$13,181
• D)$13,793

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Definitions:

Uniform Distribution

A type of probability distribution in which all outcomes are equally likely within a certain interval.

Exponential Probability Distribution

A probability distribution that describes the time between events in a Poisson process, representing the likelihood of time intervals between events.

Continuous Probability Distribution

A mathematical function that describes the probabilities of all possible values in a continuous random variable.

George III

King of Great Britain and Ireland during the late 18th century, whose reign saw the American Revolution and the loss of the American colonies.