LOTECK Company's weekly store operating costs for a 10-week period totaled $320,000 for a high, and $260,000 for a low. Sales volumes for the two weeks were $4,000,000 and $3,200,000, respectively. At a sales level of $3,500,000, the estimated store operating costs, using the high-low method of cost analysis, would be:
LOTECK Company's weekly store operating costs for a 10-week period totaled $320,000 for a high, and $260,000 for a low. Sales volumes for the two weeks were $4,000,000 and $3,200,000, respectively. At a sales level of $3,500,000, the estimated store operating costs, using the high-low method of cost analysis, would be:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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LOTECK Company's weekly store operating costs for a 10-week period totaled $320,000 for a high, and $260,000 for a low. Sales volumes for the two weeks were $4,000,000 and $3,200,000, respectively. At a sales level of $3,500,000, the estimated store operating costs, using the high-low method of cost analysis, would be:
| A. |
$175,000.
|
|
| B. |
$282,500.
|
|
| C. |
$275,000.
|
|
| D. |
$260,000. |
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