Horizon BP in Antelope Park, Alaska, has noticed that utility bills are substantially higher when the...
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Horizon BP in Antelope Park, Alaska, has noticed that utility bills are substantially higher when the average monthly temperature is colder. The only thing in the shop that uses natural gas is the furnace. Because of prevailing low temperatures, the furnace is used every month of the year (though less in the summer months and very little in August). Everything else in the shop runs on electricity. and electricity use is fairly constant throughout the year. For a year, Horizon has been recording the average daily temperature and the cost of its monthly utility bills for natural gas and electricity. January February March April May June July August September October November December Average Temperature Utility Cost 31 P January February 43 46 50 53 60 50 40 30 10 5.766 635 549 416 281 239 226 Cost estimation 216 311 536 Required: Use the high-low method to estimate utility cost for the upcoming months of January and February. The forecast for January is a near record average temperature of 5F, temperatures in February are expected to average 40°F. 756 891 Horizon BP in Antelope Park, Alaska, has noticed that utility bills are substantially higher when the average monthly temperature is colder. The only thing in the shop that uses natural gas is the furnace. Because of prevailing low temperatures, the furnace is used every month of the year (though less in the summer months and very little in August). Everything else in the shop runs on electricity. and electricity use is fairly constant throughout the year. For a year, Horizon has been recording the average daily temperature and the cost of its monthly utility bills for natural gas and electricity. January February March April May June July August September October November December Average Temperature Utility Cost 31 P January February 43 46 50 53 60 50 40 30 10 5.766 635 549 416 281 239 226 Cost estimation 216 311 536 Required: Use the high-low method to estimate utility cost for the upcoming months of January and February. The forecast for January is a near record average temperature of 5F, temperatures in February are expected to average 40°F. 756 891
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ANSWER Horizons utility cost for January is expected to be 766 and for February is ... View the full answer
Related Book For
Cost Management A Strategic Emphasis
ISBN: 978-0078025532
6th edition
Authors: Edward Blocher, David Stout, Paul Juras, Gary Cokins
Posted Date:
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