The phone bill for a law firm consists of both fixed and variable costs.Refer to the four month data below and apply the high-low method to answer the question. $$\begin{array} { | l | r | r | }
\hline & \text { Minutes } & \text { Total Bill } \
\hline \text { May } & 490 & \$ 3,200 \
\hline \text { June } & 210 & \$ 2,700 \
\hline \text { July } & 160 & \$ 2,650 \
\hline \text { August } & 330 & \$ 2,800 \
\hline
\end{array}$$ If the company uses 390 minutes in September,how much will the total bill be? (Round your intermediate calculations to two decimal places.)
A) $2,381.70
B) $2,587.23
C) $3,033.00
D) $3,356.70

Question

The phone bill for a law firm consists of both fixed and variable costs.Refer to the four month data below and apply the high-low method to answer the question. $$\begin{array} { | l | r | r | } 
\hline & \text { Minutes } & \text { Total Bill } \
\hline \text { May } & 490 & \$ 3,200 \
\hline \text { June } & 210 & \$ 2,700 \
\hline \text { July } & 160 & \$ 2,650 \
\hline \text { August } & 330 & \$ 2,800 \
\hline
\end{array}$$ If the company uses 390 minutes in September,how much will the total bill be? (Round your intermediate calculations to two decimal places.)
A) $2,381.70
B) $2,587.23
C) $3,033.00
D) $3,356.70

Quizplus · Accepted Answer

Using the high-low method, the variable cost per minute is calculated as (3200 - 2650) / (490 - 160) = 1.67. The fixed cost is then calculated using either the high or low point: 3200 - (490 * 1.67) = 1,384.70. For 390 minutes, the total bill is 1,384.70 + (390 * 1.67) = 3,033.00.

The Phone Bill for a Law Firm Consists of Both