The Skip Corporation has assembled the following data pertaining to certain costs which cannot be easily identified as either fixed or variable. Skip Corporation has heard about a method of measuring cost functions called the highminus-low method and has decided to use it in this situation.
| Cost |
Hours |
| $20,000 |
7,000 |
| 12,200 |
4,000 |
| 17,000 |
5,200 |
| 15,640 |
4,900 |
| 18,200 |
6,000 |
| 22,080 |
7,800 |
| 21,200 |
7,480 |
| 18,600 |
6,760 |
The total cost at an operating level of 2,850 hours would be
A. $14,697.
B. $9,210.
C. $11,212.
D. $19,210.
E. $11,763.