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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