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Vance Refrigeration offers service plans for commercial refrigerators. The company offers service packages that include 1) a base charge and 2) a separate charge based

image text in transcribed Vance Refrigeration offers service plans for commercial refrigerators. The company offers service packages that include 1) a base charge and 2) a separate charge based on the number of service visits desired per year. The costs for different levels of visits are below: Which of the following statements is incorrect for the above data? The same cost behavior formula would be developed under the High-low and Regression Analysis methods Service visits desired is the cost driver for Total cost If 5 visits are desired per year, the expected total cost is $625 The per visit variable cost is $250 The base charge is considered a fixed cost

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