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Crane, Inc., has collected the following information on its cost of electricity: begin{tabular}{lcc} & Machine Hours & Total Electricity Costs hline January & 520
Crane, Inc., has collected the following information on its cost of electricity:
\begin{tabular}{lcc} & Machine Hours & Total Electricity Costs \\ \hline January & 520 & $240 \\ February & 540 & $290 \\ March & 350 & $170 \\ April & 460 & $210 \\ May & 680 & $270 \\ June & 710 & $350 \\ July & 330 & $160 \\ August & 540 & $250 \\ September & 250 & $146 \\ October & 800 & $330 \\ November & 850 & $350 \\ December & 600 & $330 \end{tabular} Identify the high and low points. Using the high-low method, compute the variable cost of electricity per machine hour. (Round unit cost to 2 decimal places, e.g. 52.75.) Variable cost \$ per machine hour Compute the total fixed cost of electricity. (Round answer to 2 decimal places, e.g. 52.75.) Fixed cost \$ Represent the electricity cost function in equation form. (Round answers to 2 decimal places, e.g. 52.75.) Total cost =$ MH+$ What is the expected electricity cost when 800 machine hours are used? (Round answer to 2 decimal places, e.g. 52.75.) Total cost $Step by Step Solution
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