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 fixed component of office expense per month is closest to:
A) $12,724
B) $11,333
C) $9,521
D) $14,115

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 fixed component of office expense per month is closest to:
A) $12,724 
B) $11,333 
C) $9,521 
D) $14,115

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 fixed component of office expense per month is closest to:
A) $12,724 
B) $11,333 
C) $9,521 
D) $14,115