The Following Data Relate to the Lisle Company for May

question 37

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. 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.

---

Definitions:

Assimilation Perspective

A viewpoint that emphasizes the process through which individuals or groups from different cultures come to adopt the norms and values of another culture, often the dominant one.

Adversity

Difficulties or misfortunes faced by an individual or group.

Dominant White Culture

Refers to the prevailing cultural practices, norms, beliefs, and values that are established and maintained by the majority white population in societies where racial and ethnic diversity exists.

Racial System

A societal classification scheme based on perceived physical or genetic differences of human populations, often leading to unequal treatment and opportunities.