Question: Accounting Co. is trying to determine the fixed and variable components of a service provided by an outside technology vendor. The vendor sends one comprehensive
Accounting Co. is trying to determine the fixed and variable components of a service provided by an outside technology vendor. The vendor sends one comprehensive bill at the end of every month. The company notices that the bill fluctuates with the number of hours of service used. It has the following data from the past six months:
|
| Hours Used | Total Cost |
| June | 10643 | $2,836 |
| July | 10063 | $2,823 |
| August | 10525 | $2,903 |
| September | 9,744 | $2,696 |
| October | 11180 | $2,945 |
| November | 12,355 | $3,162 |
| December | 11505 | $2,853 |
Calculate the fixed cost of the company's utility bill..
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