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Cardillo Inc., an escrow agent, has provided the following data concerning its office expenses: Escrows Completed Office Expenses January 99 $13,181 February 111 $13,598 March
Cardillo Inc., an escrow agent, has provided the following data concerning its office expenses:
Escrows Completed | Office Expenses | |
January | 99 | $13,181 |
February | 111 | $13,598 |
March | 129 | $14,239 |
April | 133 | $14,357 |
May | 152 | $15,095 |
June | 104 | $13,335 |
July | 118 | $13,847 |
August | 100 | $13,211 |
September | 103 | $13,283 |
Management believes that office expense is a mixed cost that depends on the number of escrows completed. Note: Real estate purchases usually involve the services of an escrow agent that holds funds and prepares documents to complete the transaction. Using the high-low method, the estimate of the fixed component of office expense per month is closest to:
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