2. Using the high/low method, calculate the total fixed cost based on the above information

a.) 600

b.) 610

c.) 590

d.) 595

3. Based on the information in the previous two questions, if the company uses 2,650 gallons, what will the total predicted cost?

a.) 775.00

b.) 785.50

c.) 825.65

d.) 678.90

You have been asked to predict the first quarter of cost for water and sewage based on the past 12 months of activity. Based on the following 12 months of Information, you know the electric cost is both fixed and variable. Using the High Low Method, answer the questions below: 775.0 754.0 747.0 726.0 782.0 Month January February March April May June July August September October November December Gallons Used Cost 2,500 2,200 2,100 2,100 2,600 2,700 2,900 3,100 2,800 2,500 2,200 2,000 789.0 803.0 817.0 796.0 775.0 754.0 740.0 Using the High/Low method, calculate the variable cost per unit. A. .068 B..075 O C..07 O D..089