Luwak Coffees wants to find an equation to estimate monthly utility costs. Luwak has been in business

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Luwak Coffees wants to find an equation to estimate monthly utility costs. Luwak has been in business for one year and has collected the following cost data for utilities:

Luwak Coffees wants to find an equation to estimate monthly

1. Which of the preceding costs is variable? Fixed? Mixed? Explain.
2. Using the high-low method, determine the cost function for each cost.
3. Combine the preceding information to get a monthly utility cost function for Java Joe€™s.
4. Next month, Luwak expects to use 4,400 kilowatt hours of electricity, make 3,000 minutes of telephone calls, and use 64,000 gallons of water. Estimate total cost of utilities for themonth.

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Related Book For  book-img-for-question

Cost Accounting A Managerial Emphasis

ISBN: 978-0133428704

15th edition

Authors: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan

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