The phone bill for a corporation consists of both fixed and variable costs.Refer to the four-month data below and apply the high-low method to answer the question. $$\begin{array} { | l | r | r | }
\hline & \text { Minutes } & \text { Total Bill } \
\hline \text { January } & 480 & \$ 4500 \
\hline \text { February } & 240 & \$ 2690 \
\hline \text { March } & 160 & \$ 2630 \
\hline \text { April } & 300 & \$ 2845 \
\hline
\end{array}$$ If the company uses 360 minutes in May,how much will the total bill be? (Round any intermediate calculations to the nearest cent and your final answer to the nearest dollar.)
A) $1697
B) $2102
C) $3799
D) $7305

Question

The phone bill for a corporation consists of both fixed and variable costs.Refer to the four-month data below and apply the high-low method to answer the question. $$\begin{array} { | l | r | r | } 
\hline & \text { Minutes } & \text { Total Bill } \
\hline \text { January } & 480 & \$ 4500 \
\hline \text { February } & 240 & \$ 2690 \
\hline \text { March } & 160 & \$ 2630 \
\hline \text { April } & 300 & \$ 2845 \
\hline
\end{array}$$ If the company uses 360 minutes in May,how much will the total bill be? (Round any intermediate calculations to the nearest cent and your final answer to the nearest dollar.)
A) $1697
B) $2102
C) $3799
D) $7305

Quizplus · Accepted Answer

Using the high-low method, the variable cost per minute is calculated as (4500 - 2630) / (480 - 160) = 5.84. The fixed cost is then 4500 - (480 * 5.84) = 1698.80. For 360 minutes, the total bill is 1698.80 + (360 * 5.84) = 3799.20, rounded to $3799.

The Phone Bill for a Corporation Consists of Both Fixed