Business, 03.03.2020 01:01 Echo009

Management believes that maintenance cost is a mixed cost that depends on machine-hours. Use the high-low method to estimate the variable and fixed components of this cost. Compute the variable component first and round off to the nearest whole cent. Compute the fixed component second and round off to the nearest whole dollar. These estimates would be closest to:

A) $8.81 per machine-hour; $20,718 per month
B) $8.86 per machine-hour; $20,577 per month
C) $15.48 per machine-hour; $48,103 per month
D) $0.11 per machine-hour; $48,192 per month

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Management believes that maintenance cost is a mixed cost that depends on machine-hours. Use the hig...

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