Liva Company wants to develop a cost function for its maintenance costs to estimate such costs for the coming year. The following data are available: Direct Maintenance
Month Labour Hours Costs Incurred
January 4,000 $ 900
February 6,500 1,325
March 7,000 1,500
April 5,500 1,150
Using the high-low method, what is the fixed maintenance cost?
A)$500
B)$300
C)$200
D)$100

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The Answer of Liva Company wants to develop a cost function for its maintenance costs to estimate such costs for the coming year. The following data are available: Direct Maintenance
Month Labour Hours Costs Incurred
January 4,000 $ 900
February 6,500 1,325
March 7,000 1,500
April 5,500 1,150
Using the high-low method, what is the fixed maintenance cost?
A)$500
B)$300
C)$200
D)$100

Liva Company Wants to Develop a Cost Function for Its