In a Month When a Hotel's Laundry Department Processes 20,000

In a month when a hotel's laundry department processes 20,000 kgs of laundry, the laundry operating costs are $15,000. In a month when it processes 25,000 kgs of laundry, the laundry operating costs are $17,500. Use the high-low method to determine the laundry department's fixed cost per month.

A) Monthly fixed cost is $10,000.
B) Monthly fixed cost is $8,000.
C) Monthly fixed cost is $5,000.
D) Monthly fixed cost is $3,000.
E) None of the above

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