Annarummo 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 variable component of office expense per escrow completed is closest to:
A) $196.11
B) $95.37
C) $99.50
D) $292.71

Question

Annarummo 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 variable component of office expense per escrow completed is closest to:
A) $196.11 
B) $95.37 
C) $99.50 
D) $292.71

Quizplus · Accepted Answer

The Answer of Annarummo 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 variable component of office expense per escrow completed is closest to:
A) $196.11 
B) $95.37 
C) $99.50 
D) $292.71