Question

Refer to the data in Exercise 2-8.


Required
a. Using the high-low method, compute the variable cost of electricity per machine hour.
b. Compute the total fixed cost of electricity.
c. Represent the electricity cost function in equation form.
d. What is the expected electricity cost when 425 machine hours are used?
e. Why does your answer to part (d) differ from the actual cost for the month of April, when 425 machine hours wereused?


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  • CreatedFebruary 21, 2014
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