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Bike Attire Inc. is a manufacturer of bicycle tires. The cost of electricity is considered a mixed cost by the company. The variable portion of
Bike Attire Inc. is a manufacturer of bicycle tires. The cost of electricity is considered a mixed cost by the company. The variable portion of the electricity cost is assumed to be dependent on the number of units produced. The following is the related cost and activity data for the past six months:
tablemonthtableVolume ofProductionnumber of unitstableTotal cost ofelectricityJuly$
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