The maintenance expenses of a company are to be analyzed for purposes of constructing a flexible budget.Examination of past records disclosed the following costs and volume measures: Highest and Lowest: Cost per month $86,000 and $74,000;Machine hours 96,000 and 66,000.
Using the high-low technique,estimate the annual fixed cost for maintenance expenditures.
A)$447,400.
B)$368,800.
C)$532,900.
D)$571,200.
E)$218,700.

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The Answer of The maintenance expenses of a company are to be analyzed for purposes of constructing a flexible budget.Examination of past records disclosed the following costs and volume measures: Highest and Lowest: Cost per month $86,000 and $74,000;Machine hours 96,000 and 66,000.
Using the high-low technique,estimate the annual fixed cost for maintenance expenditures.
A)$447,400.
B)$368,800.
C)$532,900.
D)$571,200.
E)$218,700.

The Maintenance Expenses of a Company Are to Be Analyzed