The phone bill for Ace 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 intermediate calculations to two decimal places. )

What is the fixed portion of the total cost?
A)$976.90
B)$1,788.70
C)$2,219.20
D)$2,650.00

Question

The phone bill for Ace 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 intermediate calculations to two decimal places. )

What is the fixed portion of the total cost?

What is the fixed portion of the total cost?
A)$976.90 
B)$1,788.70 
C)$2,219.20 
D)$2,650.00

Quizplus · Accepted Answer

C)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)
 11ea8a42_4f96_aab3_8b44_17b2dc3aa31f_TB5024_00 Variable cost for May = 480 minutes × $2.46 per minute = $1,180.80
Total fixed costs = Total mixed cost - Total variable cost
Total fixed costs = $3,400 - $1,180.80 = $2,219.20

The Phone Bill for Ace Accounting Consists of Both Fixed