The phone bill for an accounting firm consists of both fixed and variable costs. Refer to the 4-month data below and apply the high-low method to answer the question. (Round your intermediate calculations to two decimal places)

What is the fixed portion of the total cost?

A) $1,850

B) $2,225

C) $2,425

D) $2,625

Transcribed Image Text:

January February March April Minutes 460 200 160 300 Total Bill $3,000 $2,675 $2,625 $2,800 January February March April Minutes 460 200 160 300 Total Bill $3,000 $2,675 $2,625 $2,800

Answer rating: 100% (QA)

C 2425 Explanation Variable cost per unit Change in total cost Change in volume of acti... View the full answer