unland, Inc., has collected the following information on its cost of electricity: Machine Hours Total Electricity Costs January 500 $200 February 540 $280 March 340 $200 April 470 $210 May 670 $280 June 730 $340 July 330 $180 August 530 $260 September 250 $146 October 750 $340 November 850 $350 December 600 $330 (a) Correct answer icon Your answer is correct. 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. (Round unit cost to 2 decimal places, e.g. 52.75.) Variable cost $enter the variable cost per machine hour in dollars per machine hour eTextbook and Media Attempts: 1 of 3 used (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 750 machine hours are used? (Round answer to 2 decimal places, e.g. 52.75.) Total cost $enter the total cost amount in dollars
unland, Inc., has collected the following information on its cost of electricity: Machine Hours Total Electricity Costs January 500 $200 February 540 $280 March 340 $200 April 470 $210 May 670 $280 June 730 $340 July 330 $180 August 530 $260 September 250 $146 October 750 $340 November 850 $350 December 600 $330 (a) Correct answer icon Your answer is correct. 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. (Round unit cost to 2 decimal places, e.g. 52.75.) Variable cost $enter the variable cost per machine hour in dollars per machine hour eTextbook and Media Attempts: 1 of 3 used (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 750 machine hours are used? (Round answer to 2 decimal places, e.g. 52.75.) Total cost $enter the total cost amount in dollars
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
unland, Inc., has collected the following information on its cost of electricity:
| Machine Hours | Total Electricity Costs | ||||
|---|---|---|---|---|---|
|
January
|
500 | $200 | |||
|
February
|
540 | $280 | |||
|
March
|
340 | $200 | |||
|
April
|
470 | $210 | |||
|
May
|
670 | $280 | |||
|
June
|
730 | $340 | |||
|
July
|
330 | $180 | |||
|
August
|
530 | $260 | |||
|
September
|
250 | $146 | |||
|
October
|
750 | $340 | |||
|
November
|
850 | $350 | |||
|
December
|
600 | $330 |
(a)
Correct answer icon
Your answer is correct.
Identify the high and low points.
Using the high-low method, compute the variable cost of electricity per machine hour. (Round unit cost to 2 decimal places, e.g. 52.75.)
|
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. (Round unit cost to 2 decimal places, e.g. 52.75.)
| Variable cost | $enter the variable cost per machine hour in dollars per machine hour |
eTextbook and Media
Attempts: 1 of 3 used
(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 750 machine hours are used? (Round answer to 2 decimal places, e.g. 52.75.)
| Total cost | $enter the total cost amount in dollars |
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