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Willco Inc. manufactures electronic parts. They are analyzing their monthly maintenance costs to determine the best way to budget these costs in the future. They
Willco Inc. manufactures electronic parts. They are analyzing their monthly maintenance costs to determine the best way to budget these costs in the future. They have collected the following data for the last six months: |
Month | Machine Hours | Maintenance Costs |
January | 79,500 | $161,000 |
February | 106,000 | 195,500 |
March | 98,000 | 170,400 |
April | 96,200 | 181,500 |
May | 111,300 | 195,000 |
June | 92,750 | 155,800 |
Using the high-low method and the Willco data above, what is the approximate fixed cost component of the monthly maintenance costs?
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