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The following information pertains to Tudor Logistics Company:
200X Information:
Sales $4,875,000
Selling expense 247,000
200Y Information:
Sales $4,025,000
Selling expense 230,000
Required: Using the high-low method, determine the following:
A. The variable cost element for selling expense
B. The fixed selling expense
C. The selling expense that can be expected if sales are $5,250,000
Explain the value attached to this common exercise undertaken by Accountants.
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