The phone bill for a company consists of both fixed and variable costs.Refer to the four-month data below and apply the high-low method to answer the question.

What is the variable cost per minute? (Round your answer to the nearest cent. )

Question

The phone bill for a company consists of both fixed and variable costs.Refer to the four-month data below and apply the high-low method to answer the question.

What is the variable cost per minute? (Round your answer to the nearest cent. )

Quizplus · Accepted Answer

A)
Variable cost per unit = Change in total cost / Change in volume of activity
Variable cost per unit = (Highest cost - Lowest cost)/ (Highest volume - Lowest volume)
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The Phone Bill for a Company Consists of Both Fixed