How Estimate annual fixed cost for maintenance expenditures

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Maintenance expenses of a company are to be analyzed for purposes of constructing a flexible budget. Examination of past records disclosed the following costs and volume measures:

                                      Highest              Lowest

Cost per month     $48,000               $40,000

Machine hours        52,000                  42,000

Problem 1: Using the high-low technique, estimate the annual fixed cost for maintenance expenditures:

Reference no: EM132711754

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