True option? General accounting A local gym owner analyzed her monthly utility bills and found that thehighest bill was $9,600 in August when 3,200 members used the facility,and the lowest bill was $6,000 in March when 1,600 members visited.What was the fixed portion of the utility bill?A. $3,000B. $3,600C. $4,200D. $2,400

Step 1: Define High-Low MethodThe high-low method is a cost estimation technique used to separate…

Answered: A local gym owner analyzed her monthly…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter15: Choice Of Business Entity—other Considerations

Section: Chapter Questions

Problem 71P

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A local gym owner analyzed her monthly utility bills and found that the highest bill was $9,600 in August when 3,200 members used the facility, and the lowest bill was $6,000 in March when 1,600 members visited. What was the fixed portion of the utility bill? A. $3,000 B. $3,600 C. $4,200 D. $2,400