Crane, Inc., has collected the following information on its cost of electricity: Machine Hours Total Electricity Costs
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Question:
Crane, Inc., has collected the following information on its cost of electricity:
Machine Hours | Total Electricity Costs | ||||
---|---|---|---|---|---|
January | 500 | $240 | |||
February | 540 | $280 | |||
March | 370 | $190 | |||
April | 470 | $210 | |||
May | 670 | $260 | |||
June | 710 | $330 | |||
July | 300 | $170 | |||
August | 520 | $280 | |||
September | 260 | $140 | |||
October | 740 | $340 | |||
November | 860 | $350 | |||
December | 600 | $320 |
(a)
Identify the high and low points.
Machine Hours | $ | |||
---|---|---|---|---|
High point | enter the machine hours for high point | $enter the high point in dollars | ||
Low point | enter the machine hours for low point | $enter the low point in dollars |
Using the high-low method, compute the variable cost of electricity per machine hour.
(b)
Compute the total fixed cost of electricity. (Round answer to 2 decimal places, e.g. 52.75.)
Fixed cost | $enter the fixed cost amount in dollars |
(c)
Represent the electricity cost function in equation form. (Round answers to 2 decimal places, e.g. 52.75.)
Total cost = $enter a dollar amount × MH + $enter a dollar amount |
(d)
What is the expected electricity cost when 740 machine hours are used? (Round answer to 2 decimal places, e.g. 52.75.)
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