• Clear Water Utilities is reviewing its electricity costs to manage and predict its utility expenses better.
• Data Collected:
  • January: Total Costs: $320,000, Kilowatt-hours Used: 800,000
  • December: Total Costs: $500,000, Kilowatt-hours Used: 1,200,000
• Tasks:
  • Use the High-Low Method to determine the variable cost per kilowatt-hour and fixed costs.
  • Develop a cost formula based on your findings.
  • Estimate the total costs for using 1,300,000 kilowatt-hours.
  • Discuss the potential financial benefits if energy consumption is reduced by 15%.