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:

Influence

The ability to affect the behavior of others in a particular direction.

Abundant Supply

A situation where there's a large quantity of something available, exceeding the demand.

Data

Information collected for reference or analysis, often used to inform decisions or understand trends.

Conclusions

The judgments or decisions reached after careful consideration of facts and observations.