Werner Brothers, Inc

question 8

Multiple Choice

Werner Brothers, Inc., used the high-low method to derive its cost formula for electrical power cost. According to the cost formula, the variable cost per unit of activity is $2 per machine-hour. Total electrical power cost at the high level of activity was $9,400 and at the low level of activity was $9,000. If the high level of activity was 2,200 machine hours, then the low level of activity was:

• A)1,800 machine hours
• B)1,900 machine hours
• C)2,000 machine hours
• D)1,700 machine hours

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Definitions:

Prognosis

A forecast of the likely course of a disease or ailment, predicting the chance of recovery or outcomes after diagnosis.

Cognitive Therapy

A form of psychotherapy that treats mental, emotional, and behavioral issues by identifying and modifying dysfunctional thinking patterns.

Ritalin

A medication primarily used to treat ADHD (Attention Deficit Hyperactivity Disorder) and certain sleep disorders, known chemically as methylphenidate.

Behavior Therapy

Treatment for psychological disorders where a therapist works with clients to replace maladaptive behaviors with adaptive ones.