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Slope coefficient is 0.75 and difference in machine hours is 65000 then difference in cost would be
Answer & Solution
Correct Answer:
Option
B
Slope coefficient = Difference in costs ÷ Difference in machine hours
Difference in cost = Difference in machine hours × Slope coefficient
= 65000 × 0.75 = $48,750
Difference in cost = Difference in machine hours × Slope coefficient
= 65000 × 0.75 = $48,750
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