18 Feb 1-Cooper Can Catch Corporation determined their b(
1-Cooper Can Catch Corporation determined their b(X) = $9(X) where X is the number of direct labor hours (DLH). They computed the variable rate using the high-low method rather than regression analysis. The high activity was 5,000 DLH and $90,000; the low activity was 2,000 DLH. What was the cost at the low activity level used to calculate the variable rate?A) $60,000B) $63,000C) $67,000D) none of the above (A, B, or C)2- Unlucky Fowler Inc. is deciding whether or not to close one of their divisions. Currently the division is generating sales of $6,800,000. Their contribution margin is $700,000. Fixed costs include $630,000 allocated corporate costs that will remain if the division is closed. Fixed costs traced directly to the operating division include $148,000 of depreciation for equipment that will remain if the division is closed. If the division is closed Unlucky Fowler Inc. willA) save $148,000B) save $70,000C) lose S700,000D) lose $78,000
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