At an Activity Level of 6,000 Units the Cost for Maintenance

question 98

Multiple Choice

At an activity level of 6,000 units the cost for maintenance is $7,200 and at 10,000 units the cost for maintenance is $11,600. Using the high-low method, the cost formula for maintenance is:

• A) $1.20 per unit
• B) $1.16 per unit
• C) $1,200 plus $1.10 per unit
• D) $600 plus $1.10 per unit

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