3 45 6 7 8910 QUESTION 19 Wuensch Inc, an escrow agent, has provided the followi
ID: 2392653 • Letter: 3
Question
3 45 6 7 8910 QUESTION 19 Wuensch Inc, an escrow agent, has provided the following data concerning its office expenses: Escrows Completed 53 June July. … August September October November December 87, 40 38 82 35 62 Office Expenses $7,427 $9.201 $6,769 $8,902 $6,875 $6,797 $8,681 $6,678 $7,836 Management believes that office expense is a mixed cost that depends on the number of escrows completed. Note: Real estate purchases usually involve the services of an escrow agent that holds funds and prepares complete the transaction ts to Using the high-low method, the estimate of the variable component of office expense per escrow completed is closest $45,44 D $42.76 $88.22 $131.00Explanation / Answer
Answer )
My answer is $42.76.
This is how it is calculated:
Variable component under high low method:
(Highest office expense-loweat office expense)/(highest escrow completed-lowest escrows completed)
=[$9201-$6678)/[94escrows-35escrows]
=$2523/59escrows=$42.76
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