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Estimate production power costs for your company

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Question - You have calculated, using the high-low method, a variable cost per machine hour of $0.80 for your production power costs. Power costs at 6,000 machine hours are $5,400; at 9,000 machine hours, they are $7,800. What are the total fixed costs that you would use to estimate production power costs for your company at any level within your relevant range?

a. $600

b. $6,400

c. $2,400

d. $4,800

Reference no: EM131799432

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