Farnor, Inc. , would like to estimate the variable and fixed components of its electrical costs and has compiled the following data for the last four months of operations. Using the high-low method of analysis, the estimated variable cost per machine hour for electricity is closest to:
A)$3.40
B)$2.14
C)$1.00
D)$0.87

Question

Farnor, Inc. , would like to estimate the variable and fixed components of its electrical costs and has compiled the following data for the last four months of operations.  Using the high-low method of analysis, the estimated variable cost per machine hour for electricity is closest to:
A)$3.40 
B)$2.14 
C)$1.00 
D)$0.87

Quizplus · Accepted Answer

The Answer of Farnor, Inc. , would like to estimate the variable and fixed components of its electrical costs and has compiled the following data for the last four months of operations.  Using the high-low method of analysis, the estimated variable cost per machine hour for electricity is closest to:
A)$3.40 
B)$2.14 
C)$1.00 
D)$0.87