Swanson and Associates Presently Leases a Copy Machine Under an Agreement

question 23

Multiple Choice

Swanson and Associates presently leases a copy machine under an agreement that calls for a fixed fee each month and a charge for each copy made. Swanson made 7,000 copies and paid a total of $360 in March; in May, the firm paid $280 for 5,000 copies. The company uses the high-low method to analyze costs.
Swanson's monthly fixed fee is:

• A) $80.
• B) $102.
• C) $106.
• D) $112.
• E) None of the other answers is correct.

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Definitions:

Flagellated Collar Cells

Specialized cells found in sponges that have a flagellum surrounded by a collar used to pump water through the sponge and trap food particles.

True Coelom

A fluid-filled body cavity completely lined by tissue derived from the mesoderm, found in most complex animals, which provides a space for organ development and movement.

Sponges

Simple aquatic animals that draw water containing food particles into their porous bodies by means of flagellated cells.

Hydras

A type of small, freshwater organisms from the phylum Cnidaria, known for their regenerative abilities.