Problem 2

Problem2 (30 pts) Machine hours and electricity costs for Lindor Industries for the year 2018 are as follows: Month anuary February March Machine Hours 2,000 2,320 1,50 2,480 3,040 2,640 3,280 2,800 1,600 2,960 3,760- 3,360 Electricity Costs $ 9,200 10,500 6,750 11,500 14,125 11,000 12,375 11,375 7,750 13,000 15,500 13,875 May June August September October December Using the high-low method, determine the fixed and variable parts of Lindor's electricity cost. Develop a cost function for monthly electricity costs. i t 67 Estimate total electricity costs for a month in which 3,000 machine hours are worked