Question: Barkoff Enterprises, which uses the high - low method to analyze cost behavior, has determined that machine hours best explain the company's utilities cost. The
Barkoff Enterprises, which uses the highlow method to analyze cost behavior, has determined that machine hours best explain the company's utilities cost. The company's relevant range of activity varies from a low of machine hours to a high of machine hours, with the following data being available for the first six months of the year:
Month Utilities Machine Hours
January $
February
March
April
May
June
Using the highlow method, the utilities cost for Barkoff associated with machine hours would be:
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