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Kootenay Bicycle Company is trying to analyze cost behavior of their electricity costs. They have determined that machine hours is the best way to predict
Kootenay Bicycle Company is trying to analyze cost behavior of their electricity costs. They have determined that machine hours is the best way to predict their electricity costs. The company's cost and machine hours for the past six months are as follows: Machine Hours Electricity Cost 1 720 $45,888.00 2 700 $41,550.00 $46,664.00 3 680 4 730 $47,610.00 un 650 $43,765.00 6 710 $46,825.00 I Discuss with me whether you think the Electricity cost is a fixed, variable or mixed cost. Discuss what methods you can use to predict the electricity cost based on machine hours. Which method would you recommend and why
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