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.

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. )

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.

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. )

Quizplus · Accepted Answer

C)
 11ea86ed_2b99_7669_8b27_3f173dacf22f_TB3056_00 Variable cost for January = 480 minutes × $5.84 per minute = $2803.20
Total fixed costs = Total mixed cost - Total variable cost
Total fixed costs = $4500 - $2803.20 = $1697
For 360 minutes:
Total cost = (360 minutes × 5.84)+ $1697
Total cost = $2102 + $1697 = $3799

The Phone Bill for a Corporation Consists of Both Fixed