The following data has been assembled for Tiger Company.Use the high-low method. $$\begin{array}{l}
\text { Cost }& \text { Hours } \
\$ 24,400 & 2,000 \
39,000 & 2,200 \
35,280 & 2,750 \
36,400 & 3,500 \
44,160 & 3,900
\end{array}$$ The total fixed cost is ____.
A)$26,672
B)$21,360
C)$10,112
D)$3,600

Question

Quizplus · Accepted Answer

The high-low method calculates the variable cost per unit first, then uses it to find the fixed cost. The variable cost per hour is $(44,160 - 24,400) / (3,900 - 2,000) = 10.4$. Using the highest point: $44,160 = 10.4 \times 3,900 + \text{Fixed Cost}$, solving gives a fixed cost of $3,600.

The Following Data Has Been Assembled for Tiger Company The Total Fixed Cost Is ____