Cardillo Inc. , an escrow agent, has provided the following data concerning its office expenses: Management believes that office expense is a mixed cost that depends on the number of escrows completed.Note: Real estate purchases usually involve the services of an escrow agent that holds funds and prepares documents to complete the transaction. Using the high-low method, the estimate of the fixed component of office expense per month is closest to:
A)$9, 606
B)$13, 485
C)$13, 181
D)$13, 793

Question

Cardillo Inc. , an escrow agent, has provided the following data concerning its office expenses:  Management believes that office expense is a mixed cost that depends on the number of escrows completed.Note: Real estate purchases usually involve the services of an escrow agent that holds funds and prepares documents to complete the transaction. Using the high-low method, the estimate of the fixed component of office expense per month is closest to:
A)$9, 606 
B)$13, 485 
C)$13, 181 
D)$13, 793

Quizplus · Accepted Answer

The Answer of Cardillo Inc. , an escrow agent, has provided the following data concerning its office expenses:  Management believes that office expense is a mixed cost that depends on the number of escrows completed.Note: Real estate purchases usually involve the services of an escrow agent that holds funds and prepares documents to complete the transaction. Using the high-low method, the estimate of the fixed component of office expense per month is closest to:
A)$9, 606 
B)$13, 485 
C)$13, 181 
D)$13, 793