Question: The Corner Store would like to estimate its utility costs. An analysis of the previous year shows that the high level of activity- total

The Corner Store would like to estimate its utility costs. An analysis of the previous year shows that the high level of activity- total monthly usage of 44,000 kilowatt hours - had an average cost of $0 11 per kilowatt hour, but the low level of activity-total monthly usage of 20,000 kilowatt hours - had an average cost of $0.13 cents per kilowatt hour. Required: 1. Estimate the variable cost per unit (round to 3 decimals) and the total monthly fixed cost. (5 marks) 2. Estimate the utility cost for 60,000 kilowatt hours in a month. (1 mark)

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