Gribble Company's high and low level of activity last year was 60,000 units of product produced in May and 20,000 units produced in November.Machine maintenance costs were $104,000 in May and $40,000 in November.Using the high-low method, determine an estimate of total maintenance cost for a month in which production is expected to be 45,000 units.
A) $90,000
B) $96,000
C) $78,000
D) $80,000
Correct Answer:
Verified
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