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Gator Beach Marts, a chain of convenience grocery stores in the Fort Lauderdale area, has store hours that fluctuate from month to month as the

Gator Beach Marts, a chain of convenience grocery stores in the Fort Lauderdale area, has store hours that fluctuate from month to month as the tourist trade in the community varies. The utility costs for one of the companys stores are listed below for the past six months.

Month Total Hours of Operation Total Utility Cost

January 550 $ 3,240

Feb 600 3,400

March 700 3,800

April 500 3,200

May 450 2,700

June 400 2,600

Use the high-low method to estimate the cost behavior for the store's utility costs. Express the cost

behavior in formula form (Y=a+bX). What is the variable utility cost per hour of operation?

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