Beechtree Corporation sells chewing gum and during January they ran production machines for 29,000 hours total and incurred $12,000 in maintenance costs. During July they ran production machines for 15,000 hours total and incurred $8,800 in maintenance costs. Based on this data, what are the fixed costs? (Round intermediary calculations to the nearest cent. Use the "high" data month to calculate your final answer. Do not use the "low" month, as it will result in an approximation of the cost.) O A. $30,920 O B. $5,330 O C. $12,000 O D. $8,800
Beechtree Corporation sells chewing gum and during January they ran production machines for 29,000 hours total and incurred $12,000 in maintenance costs. During July they ran production machines for 15,000 hours total and incurred $8,800 in maintenance costs. Based on this data, what are the fixed costs? (Round intermediary calculations to the nearest cent. Use the "high" data month to calculate your final answer. Do not use the "low" month, as it will result in an approximation of the cost.) O A. $30,920 O B. $5,330 O C. $12,000 O D. $8,800
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Beechtree Corporation sells chewing gum and during January they ran production machines for 29,000 hours total
and incurred $12,000 in maintenance costs. During July they ran production machines for 15,000 hours total and
incurred $8,800 in maintenance costs.
Based on this data, what are the fixed costs? (Round intermediary calculations to the nearest cent. Use the "high"
data month to calculate your final answer. Do not use the "low" month, as it will result in an approximation of
the cost.)
O A. $30,920
O B. $5,330
O C. $12,000
O D. $8,800
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