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

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?

Machine Hours 625 700 500 425 450 300 375 550 575 280 430 200 Total Electricity Costs $280 $290 $265 $200 $248 $170 $180 $240 $260 $150 $215 $100 January February March April May June August September October November December

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