Maintenance expenses of a company are to be analyzed for purposes of constructing a flexible budget. Examination of past records disclosed the following costs and volume measures: Highest Lowest Cost per month $ 89,000 $ 86,000

Machine hours 92,000 86,000

Using the high-low technique, estimate the annual fixed cost for maintenance expenditures:

Multiple Choice

$392,200.

$313,600.

$477,700.

$516,000.

$163,500.