• 2022-06-06
    An analysis of past maintenance costs indicates that maintenance cost is an average of $0.40 per machine-hour at an activity level of 20,000 machine-hours and $0.50 per machine-hour at an activity level of 16,000 machine-hours. Assuming that this activity is within the relevant range, what is the total expected maintenance cost if the activity level is 18,500 machine-hours?
    A: $1,600
    B: $6,960
    C: $8,000
    D: $9,000