The maintenance expenses of a company are to be analyzed for purposes of constructing a flexible budget.Examination of past records disclosed the following costs and volume measures: Highest and Lowest: Cost per month $42,000and $34,000;Machine hours 46,000 and 30,000.Using the high-low technique,estimate the annual fixed cost for maintenance expenditures:
A)$447,000.
B)$240,000.
C)$230,000.
D)$384,000.
E)$228,000

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The Answer of The maintenance expenses of a company are to be analyzed for purposes of constructing a flexible budget.Examination of past records disclosed the following costs and volume measures: Highest and Lowest: Cost per month $42,000and $34,000;Machine hours 46,000 and 30,000.Using the high-low technique,estimate the annual fixed cost for maintenance expenditures:
A)$447,000.
B)$240,000.
C)$230,000.
D)$384,000.
E)$228,000

The Maintenance Expenses of a Company Are to Be Analyzed