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What will be the average cost per hour

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Question - A, Inc., uses the high-low method to analyze cost behavior. The company observed that at 12,000 machine hours of activity, total maintenance costs averaged $7.00 per hour. When activity jumped to 15,000 machine hours, which was still within the relevant range, the average cost per machine hour totaled $6.40. On the basis of this information, what will be the average cost per hour if 8,000 machine hours of activity will be incurred?

Reference no: EM132778655

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