This question is based on the monthly maintenance expenses of a company, which are to be analyzed for purposes of construction a flexible budget. Examination of past records disclosed the following costs and volume measures:
| Highest | Lowest | |
| Cost per month | $40,000 | $32,000 |
| Machine hours | 24,000 | 16,000 |
Using the high-low-point method of analysis, the estimated variable cost per machine hour is
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