Question: Swan, Inc. uses the high-low method to analyze cost behavior. The company observed that at 18,000 machine hours of activity, total maintenance costs averaged $37.50

Swan, Inc. uses the high-low method to analyze cost behavior. The company observed that at 18,000 machine hours of activity, total maintenance costs averaged $37.50 per hour. When activity jumped to 24,000 machine hours, which was still within the relevant range, the average total cost per machine hour was $30.00. On the basis of this information, the fixed cost for Swan was: (Round your intermediate calculations to 2 decimal places and final answer to nearest dollar amount.)

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