Answer the following questions using the information below:
For Akram Company, labor-hours are 25,000 and wages $94,000 at the high point of the relevant range, and labor-hours are 15,000 and wages $70,000 at the low point of the relevant range.
-What is the slope coefficient per labor-hour?
A) $2.40
B) $3.76
C) $0.42
D) $4.67

Question

Quizplus · Accepted Answer

The slope coefficient per labor-hour is calculated as (Wages at high point - Wages at low point) / (Labor-hours at high point - Labor-hours at low point). In this case, the slope coefficient is ($94,000 - $70,000) / (25,000 - 15,000) = $2.40.

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