Answer the following question(s) using the information below.
The Taranto Company uses the high-low method to estimate it's cost function. The information for the current year is provided below:

-What is the slope coefficient per machine-hour?
A) $125.00
B) $12.50
C) $10.00
D) $100.00
E) $0.50

Question

Answer the following question(s) using the information below.
The Taranto Company uses the high-low method to estimate it's cost function. The information for the current year is provided below:
 
-What is the slope coefficient per machine-hour?
A) $125.00 
B) $12.50 
C) $10.00 
D) $100.00 
E) $0.50

Quizplus · Accepted Answer

Slope = ($225,000 - $125,000)/(2,000 - 1,000) = $100

Answer the Following Question(s) Using the Information Below