Test Content

Question $1$

Barkoff Enterprises, which uses the high$-$low method to analyze cost behavior, has determined that machine hours best explain the company's utilities cost. The company's relevant range of activity varies from a low of $600$ maching hours to a high of $1,100$ machine hours, with the following data being available for the first six months of the year:

$\backslash$table$[[$Month$,$Utilities,Machine Hours$],[$January$,$$$8,700,800],[$February$,8,360,720],[$March$,8,950,810],[$April$,9,360,920],[$May$,9,625,950],[$June$,9,150,900]]$

The variable utilities cost per machine hour for Barkoff is:

$$5\mathrm{.}50.$

$$4\mathrm{.}50.$

None of the answers is correct.

$$5\mathrm{.}00$

$$0\mathrm{.}18.$