Question: Atlanta, Inc. uses the high-low method to analyze cost behavior. Atlanta has determined that machine hours best explain the company's utilities cost. The company's relevant

Atlanta, Inc. uses the high-low method to analyze cost behavior. Atlanta has determined that machine hours best explain the company's utilities cost. The company's relevant range of activity varies from a low of 600 machine hours to a high of 1,100 machine hours, with the following data being available for the first six months of the year:

Month	Utilities	Machine Hours
January	$8,700	800
February	8,360	720
March	8,950	810
April	9,360	920
May	9,625	950
June	9,150	900

16. The fixed utilities cost per month is:

A. $3,764.

B. $4,400.

C. $4,760.

D. $5,100.

E. an amount other than those listed above.

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