High low method-cost formula for maintenance

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Reference no: EM13145131

At an activity level of 6,000 units the cost for maintenance is $7,200 and at 10,000 units the cost for maintenance is $11,600. Using the high-low method, the cost formula for maintenance is:

a. $1.20 per unit

b. $1.16 per unit

c. $1,200 plus $1.10 per unit

d. $600 plus $1.10 per unit

Reference no: EM13145131

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