Annarummo Inc

question 38

Multiple Choice

Annarummo 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) $196.11
• B) $95.37
• C) $99.50
• D) $292.71

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