Denver Manufacturing Denver Manufacturing would like to do a better job budgeting for maintenance costs and, consequently, they have prepared a schedule showing maintenance costs and units produced for the past five months as follows:
Refer to the Denver Manufacturing information above. Using the high/low method, what is the cost equation to predict total maintenance costs?
A) Y = $90 + $.90x
B) Y = $2,540 + $.40x
C) Y = $1,646 + $.5824x
D) Y = $2.50x - $11,320

Question

Denver Manufacturing Denver Manufacturing would like to do a better job budgeting for maintenance costs and, consequently, they have prepared a schedule showing maintenance costs and units produced for the past five months as follows:
 Refer to the Denver Manufacturing information above. Using the high/low method, what is the cost equation to predict total maintenance costs?
A) Y = $90 + $.90x 
B) Y = $2,540 + $.40x 
C) Y = $1,646 + $.5824x 
D) Y = $2.50x - $11,320

Quizplus · Accepted Answer

The Answer of Denver Manufacturing Denver Manufacturing would like to do a better job budgeting for maintenance costs and, consequently, they have prepared a schedule showing maintenance costs and units produced for the past five months as follows:
 Refer to the Denver Manufacturing information above. Using the high/low method, what is the cost equation to predict total maintenance costs?
A) Y = $90 + $.90x 
B) Y = $2,540 + $.40x 
C) Y = $1,646 + $.5824x 
D) Y = $2.50x - $11,320

Denver Manufacturing Denver Manufacturing Would Like to Do a Better