. Paine Company wishes to determine the fixed portion of its electrical costs (a mixed cost). Management believes that the variable portion of the electrical costs is driven by machine-hours. Information for the previous three months follows:

Machine-hours Electrical cost

January 66,000 $7,150

February 62,000 $7,000

March 68,000 $7,600

Company is expecting 64,200 machine hours for month of April. What is expected company's electrical cost for April? (Hint: Using the high-low method, first determine the relationship between electrical cost and machine hours. Then using the relationship compute expected company's electrical costs for month of April.)