The following data relate to the Lyle Company for May and August of the current year: May and August were the lowest and highest activity levels, and Lyle uses the high-low method to analyze cost behaviour. Which of the following statements is true?
A) The variable maintenance cost is $43 per hour.
B) The variable maintenance cost is $45 per hour.
C) The variable maintenance cost is $47 per hour.
D) The fixed maintenance cost is $1,725,000 per month.
E) The variable maintenance cost is $18 per hour and the fixed maintenance cost is $725,000.
Correct Answer:
Verified
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