Compute the 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: EM132717831

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