The phone bill for Laurel Accounting consists of both fixed and variable costs.Refer to the four month data below and apply the high-low method to answer the question.(Round your calculation to two decimal places.) $$\begin{array} { | l | r | r | }
\hline & \text { Minutes } & \text { Total Bill } \
\hline \text { May } & 480 & \$ 3,000 \
\hline \text { June } & 240 & \$ 2,675 \
\hline \text { July } & 160 & \$ 2,640 \
\hline \text { August } & 320 & \$ 2,880 \
\hline
\end{array}$$ What is the variable cost per minute?
A) $1.13
B) $0.38
C) $1.02
D) $0.75

Question

The phone bill for Laurel Accounting consists of both fixed and variable costs.Refer to the four month data below and apply the high-low method to answer the question.(Round your calculation to two decimal places.) $$\begin{array} { | l | r | r | } 
\hline & \text { Minutes } & \text { Total Bill } \
\hline \text { May } & 480 & \$ 3,000 \
\hline \text { June } & 240 & \$ 2,675 \
\hline \text { July } & 160 & \$ 2,640 \
\hline \text { August } & 320 & \$ 2,880 \
\hline
\end{array}$$ What is the variable cost per minute?
A) $1.13
B) $0.38
C) $1.02
D) $0.75

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 $3,000 and the lowest total bill is $2,640. The highest minutes is 480 and the lowest minutes is 160. Therefore, the variable cost per minute is ($3,000 - $2,640) / (480 - 160) = $360 / 320 = $1.13.

The Phone Bill for Laurel Accounting Consists of Both Fixed