Gargymal Company would like to estimate the variable and fixed components of its
ID: 2380073 • Letter: G
Question
Gargymal Company would like to estimate the variable and fixed components of its electrical costs and has compiled the following data for the past five months of operations.
Machine Hours
Electrical Cost
August
September
Using the high-low method of analysis, the estimated fixed cost per month for electricity is closest to which of the following?
Gargymal Company would like to estimate the variable and fixed components of its electrical costs and has compiled the following data for the past five months of operations.
Machine Hours
Electrical Cost
August
1,000 $1,620September
900 $1,510 October 1,500 $1,870 November 2,000 $1,950 December 1,300 $1,730Using the high-low method of analysis, the estimated fixed cost per month for electricity is closest to which of the following?
A. $1,306.50 B. $1,150.00 C. $1,290.00 D. $870.00Explanation / Answer
B. $1,150.00
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