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.
-$$\begin{array} { | l | r | r | }
\hline & \text { Minutes } & \text { Total Bill } \
\hline \text { January } & 460 & \$ 3000 \
\hline \text { February } & 200 & \$ 2675 \
\hline \text { March } & 170 & \$ 2660 \
\hline \text { April } & 310 & \$ 2825 \
\hline
\end{array}$$ 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. 
-$$\begin{array} { | l | r | r | } 
\hline & \text { Minutes } & \text { Total Bill } \
\hline \text { January } & 460 & \$ 3000 \
\hline \text { February } & 200 & \$ 2675 \
\hline \text { March } & 170 & \$ 2660 \
\hline \text { April } & 310 & \$ 2825 \
\hline
\end{array}$$ What is the variable cost per minute? (Round your answer to the nearest cent.)

Quizplus · Accepted Answer

The variable cost per minute is calculated as the difference between the highest and lowest total bills divided by the difference between the highest and lowest minutes. In this case, the highest total bill is $3000 and the lowest total bill is $2660. The highest minutes is 460 and the lowest minutes is 170. Therefore, the variable cost per minute is ($3000 - $2660) / (460 - 170) = $340 / 290 = $1.17.

The Phone Bill for a Company Consists of Both Fixed