Comco,IncHas Accumulated the Following Data for the Cost of Maintenance

question 147

Multiple Choice

Comco,Inc.has accumulated the following data for the cost of maintenance on its machinery for the last four months: Assume that the relevant range includes all of the activity levels mentioned in this problem. Assuming Comco uses the high-low method of analysis,the fixed cost of maintenance would be estimated to be:

• A)$14,500
• B)$5,020
• C)$13,000
• D)$12,320

---

Definitions:

Efficiency-Wage Theories

Economic theories that suggest higher wages can increase worker productivity and efficiency, thereby justifying above-equilibrium wage rates.

Equilibrium Wage

The wage rate at which the quantity of labor supplied equals the quantity of labor demanded, resulting in a stable employment situation without surpluses or shortages.

Efficiency Wage

is the concept that paying workers a higher wage than the market equilibrium can lead to higher productivity and efficiency, incentivizing better performance and loyalty.

Similar Job

Pertains to a job that has duties, skills, and responsibilities closely matching those of another job, often within the same industry or field.