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Given the Following Cost and Activity Observations for Merritt Company's

Question 69

Multiple Choice

Given the following cost and activity observations for Merritt Company's utilities, use the high-low method to calculate Merritt's fixed costs per month.  Machine Hours Cost 20,000$52,600 January 29,00075,100 February 22,00057,000 March 24,50064,000 April \begin{array}{lll}\text { Machine Hours}&\text { Cost }\\20,000 & \$ 52,600 & \text { January } \\29,000 & 75,100 & \text { February } \\22,000 & 57,000 & \text { March } \\24,500 & 64,000 & \text { April }\end{array}


A) $25,100
B) $50,000
C) $22,500
D) $2,600

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