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Consider the following information for Makeful Company: At an activity level of 6,000 units the cost for maintenance is $7,320 and at 10,000 units the
Consider the following information for Makeful Company:
At an activity level of 6,000 units the cost for maintenance is $7,320 and at 10,000 units the cost for maintenance is $12,200. Using the high-low method, the cost formula for maintenance is?
A. $1.22 per unit
B. $600 plus $1.10 per unit
C. $1.30 per unit
D. $1,200 plus $$1.10 per unit
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