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Determine the fixed cost for Swan

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Question - Swan, Inc. uses the high-low method to analyze cost behavior. The company observed that at 21,000 machine hours of activity, total maintenance costs averaged $36.20 per hour. When activityjumped to 25,000 machine hours, which was still within the relevant range, the average total cost per machine hour was $31.40. On the basis of this information, determine the fixed cost for Swan?

Reference no: EM133119763

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