Cardillo Inc

question 142

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 variable component of office expense per escrow completed is closest to:

• A)$26.75
• B)$118.23
• C)$36.11
• D)$72.49

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Definitions:

Protectionism

Economic policy of restraining trade between states through methods such as tariffs on imported goods, restrictive quotas, and a variety of other government regulations to protect domestic industries from foreign competition.

International Trade

The exchange of goods and services between countries, which allows for greater diversity of products and economic interdependence.

Volume Of Trade

The total quantity of shares or contracts traded for a specific financial instrument or within a market during a certain period.