Use the information below to answer the following question(s).The Monroe Company uses the high-low method to estimate the cost function.The information for the current year is provided below.
-What is the constant for the estimating cost equation?
A)$2,080
B)$2,960
C)$3,970
D)$4,000
E)$8,000

Question

Use the information below to answer the following question(s).The Monroe Company uses the high-low method to estimate the cost function.The information for the current year is provided below. 
-What is the constant for the estimating cost equation?
A)$2,080 
B)$2,960 
C)$3,970 
D)$4,000 
E)$8,000

Quizplus · Accepted Answer

The constant for the estimating cost equation is $2,080. This is the fixed cost that is incurred regardless of the number of units produced.

Use the Information Below to Answer the Following Question(s)