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