Slope coefficient is 0.75 and difference in machine hours is 65000 then difference in cost would be
A. $86,667
B. $48,750
C. $85,000
D. $55,000
Answer: Option B
Solution(By Examveda Team)
Slope coefficient = Difference in costs ÷ Difference in machine hoursDifference in cost = Difference in machine hours × Slope coefficient
= 65000 × 0.75 = $48,750
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