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. $$\begin{array} { | l | r | r | }
\hline & \text { Minutes } & \text { Total Bill } \
\hline \text { Tanuary } & 460 & \$ 4,000 \
\hline \text { February } & 210 & \$ 2,695 \
\hline \text { March } & 170 & \$ 2,640 \
\hline \text { April } & 300 & \$ 2,835 \
\hline
\end{array}$$ If the company uses 390 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. $$\begin{array} { | l | r | r | } 
\hline & \text { Minutes } & \text { Total Bill } \
\hline \text { Tanuary } & 460 & \$ 4,000 \
\hline \text { February } & 210 & \$ 2,695 \
\hline \text { March } & 170 & \$ 2,640 \
\hline \text { April } & 300 & \$ 2,835 \
\hline
\end{array}$$ If the company uses 390 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

Using the high-low method, the variable cost per minute is calculated as (4000-2640)/(460-170) = 4.69. The fixed cost is then calculated using the highest point: 4000 - (460 * 4.69) = 842.60. For 390 minutes, the total bill is 842.60 + (390 * 4.69) = 3672.10, rounded to $3,672.

The Phone Bill for a Corporation Consists of Both Fixed