The Following Data Relate to the Lisle Company for May

question 53

Multiple Choice

The following data relate to the Lisle Company for May and August of the current year: $\begin{array}{lrr} & \text { May } & \text { August } \\\text { Maintenance hours } & 25,000 & 29,000 \\\text { Maintenance cost } & \$ 1,175,000 & \$ 1,247,000\end{array}$ May and August were the lowest and highest activity levels, and Lisle uses the high-low method to analyze cost behavior. If maintenance hours are estimated to be 26,000 hours in October, which of the following statements is true?

• A) The variable maintenance cost is $18 per hour.
• B) The variable maintenance cost is $22 per hour.
• C) The variable maintenance cost is $24 per hour.
• D) The fixed maintenance cost is $72,000 per month.
• E) More than one of the other answers is true.

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Definitions:

Chest Compressions

A lifesaving technique that involves pressing down on a person's chest cavity to help circulate blood when the heart is not beating effectively.

Patent Airway

An airway that is open and clear, allowing for the free passage of air in and out of the lungs.

Cardiac Arrest

A sudden loss of heart function, leading to the cessation of effective blood circulation and requiring immediate medical intervention.

Bag-valve Mask

A hand-held device commonly used to provide positive pressure ventilation to patients who are not breathing or not breathing adequately.