Glatt Inc, an Escrow Agent, Has Provided the Following Data Concerning

question 107

Multiple Choice

Glatt 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 fixed component of office expense per month is closest to:

• A)$6,692
• B)$8,064
• C)$7,376
• D)$7,720

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Definitions:

Increase

An upward change or growth in a quantity or value.

Inflation

A measure of the rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.

Consumer Goods

Physical products purchased by consumers for personal or household use.

Technology

The application of scientific knowledge for practical purposes, especially in industry and improvements in tools, machines, techniques, and software.