The phone bill for a law firm 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 390 minutes in September,how much will the total bill be? (Round your intermediate calculations to two decimal places. )
A)$2,381.70
B)$2,587.23
C)$3,033.00
D)$3,356.70

Question

The phone bill for a law firm 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 390 minutes in September,how much will the total bill be? (Round your intermediate calculations to two decimal places. )
A)$2,381.70 
B)$2,587.23 
C)$3,033.00 
D)$3,356.70

Quizplus · Accepted Answer

C)
 11ea8a42_4f96_d1c7_8b44_8381232504c0_TB5024_00 Variable cost for May = 490 minutes × $1.67 per minute = $818.30
Total fixed costs = Total mixed cost - Total variable cost
Total fixed costs = $3,200 - $818.30 = $2,381.70
For 390 minutes:
Total cost = (390 minutes × 1.67)+ $2,381.70
Total cost = $651.30 + $2,381.70 = $3,033.00

The Phone Bill for a Law Firm Consists of Both