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Bava Company Wants to Develop a Cost Function for Its

Question 20

Multiple Choice

Bava Company wants to develop a cost function for its maintenance costs to estimate such costs for the coming year. The following data are available:  Direct  Maintenance  Month  Labour Hours  Costs Incurred  June 4,000$900 July 6,5001,325 August 7,0001,500 September 5,5001,150\begin{array}{llr}& \text { Direct } & \text { Maintenance } \\\text { Month } & \text { Labour Hours } & \text { Costs Incurred }\\\text { June } & 4,000 & \$ 900 \\\text { July } & 6,500 & 1,325 \\\text { August } & 7,000 & 1,500 \\\text { September } & 5,500 & 1,150\end{array} Using the high-low method, what is the fixed maintenance cost?


A) $500
B) $300
C) $200
D) $100

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