1. Given the following cost and activity observations for Bounty Company's utilities, use the high-low method to determine Bounty's variable utilities cost per machine hour. Round your answer to the nearest cent.

   	Cost	Machine Hours
   March	$3,121	15,054
   April	2,634	9,532
   May	2,897	12,087
   June	3,831	18,125

   a.$0.84

   b.$0.14

   c.$1.67

   d.$0.80

2. Bryce Co. sales are $893,000, variable costs are $460,200, and operating income is $247,000. The contribution margin ratio is

a.56.7%

b.48.5%

c.44.2%

d.51.5%