Highland Rose Ltd is attempting to develop the cost function for repair costs. The following past data are available: $$\begin{array} { c c }
\underline{\text { Machine Hours} } &\underline{ \text { Repair Costs} } \
4,800 & \$ 6,385 \
3,400 & 4,585 \
4,000 & 5,285 \
5,900 & 7,085
\end{array}$$ Using the high-low method, what is the fixed repair cost?
A) $475
B) $850
C) $1,185
D) $565

Question

Highland Rose Ltd is attempting to develop the cost function for repair costs. The following past data are available: $$\begin{array} { c c } 
\underline{\text { Machine Hours} } &\underline{ \text { Repair Costs} } \
 4,800 & \$ 6,385 \
3,400 & 4,585 \
4,000 & 5,285 \
5,900 & 7,085
\end{array}$$ Using the high-low method, what is the fixed repair cost?
A) $475
B) $850
C) $1,185
D) $565

Quizplus · Accepted Answer

The Answer of Highland Rose Ltd is attempting to develop the cost function for repair costs. The following past data are available: $$\begin{array} { c c } 
\underline{\text { Machine Hours} } &\underline{ \text { Repair Costs} } \
 4,800 & \$ 6,385 \
3,400 & 4,585 \
4,000 & 5,285 \
5,900 & 7,085
\end{array}$$ Using the high-low method, what is the fixed repair cost?
A) $475
B) $850
C) $1,185
D) $565

Highland Rose Ltd Is Attempting to Develop the Cost Function