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Managerial Accounting

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Difficult

High-Low Method: Estimating Fixed Costs

MGRACT-YDGGY7

In October, Springfield Company sold 15,000 units and had total selling and administrative costs of \$113,000. In November, Springfield Company sold 18,000 units and had total selling and administrative costs of \$134,000. Based on these two observations, how much of Springfield's selling and administrative costs can be considered to be fixed?

A

None of Springfield's selling and administrative costs can be considered fixed.

B

$\$8,000$

C

$\$13,000$

D

$\$105,000$