Question
The total cost of local telephone calls and the number of local telephone calls for the last six months for Ted were as follows: Month
The total cost of local telephone calls and the number of local telephone calls for the last six months for Ted were as follows:
Month
Total cost
Total number of local calls
October
$350
1,650
November
$480
3,875
December
$200
875
January
$400
2,640
February
$500
2,750
March
$420
2,680
If the high-low method for calculating cost volume profit equation is used, what is the variable cost per call?(round to two decimal places)
a.$0.09
b.$0.18
c.$0.16
d.$0.23
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Corporate Financial Accounting
Authors: Carl S Warren, James M Reeve, Jonathan Duchac
11th Edition
0538480920, 9780538480925
