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Katrina Evert is President of Evert Tool Co. She has asked for information about the cost behavior of manufacturing support costs. She wants to know
Katrina Evert is President of Evert Tool Co.
She has asked for information about the cost behavior of manufacturing support costs.
She wants to know how much support cost is fixed and how much is variable.
The following data are the only records available:
Month | Machine Hours | Support Costs |
May | 850 | $9,000 |
June | 1,300 | 12,500 |
July | 1,000 | 7,900 |
August | 1,250 | 11,400 |
September | 1,750 | 15,300 |
What is the amount of fixed cost for this company?
Group of answer choices
$4,750
$5,000
$4,000
$3,050
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