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Blue Denim Company makes blue jeans. The company controller wants to calculate the fixed and variable cost associate with electricity used in the factory. In
Blue Denim Company makes blue jeans. The company controller wants to calculate the fixed and variable cost associate with electricity used in the factory. In March, the highest level of activity of 600 machines hours, the electric cost was $4,100. In June, the lowest level of activity of 350 machines hours, the electric cost was $2,575. The total fixed cost estimation using the high-low method is _____.
A. $1,525
B. $2,575
C. $3,660
D. $4,100
E. none of the above
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