Paine Company Wishes to Determine the Fixed Portion of Its

question 5

Multiple Choice

Paine Company wishes to determine the fixed portion of its electrical costs (a mixed cost) . Management believes that the variable portion of the electrical costs is driven by machine-hours. Information for the previous three months follows: $\begin{array}{lcc}&\text { Machine-hours }&\text {Electrical cost}\\ \text {January } &33,000 &£ 600 \\ \text { February } &31,000& £585\\ \text { March} &34,000& £610\end{array}$

Using the high-low method, the fixed portion of the company's electrical costs would be estimated to be closest to:

• A)£283.
• B)£327.
• C)£375.
• D)£408.

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Definitions:

Seed Coat

The outer protective layer of a seed that shields the embryonic plant from damage and disease.

Protective Coating

A layer or cover applied to objects or materials to shield them from harm, such as corrosion, weathering, or physical damage.

Embryo

An early developmental stage of a multicellular organism following fertilization, during which rapid cell division and growth occur.

Sepals

The outer parts of the flower, typically green and leaf-like, that protect the developing bud.