The Following Information Is Available for Electricity Costs for the Last

question 174

Multiple Choice

The following information is available for electricity costs for the last six months of the year: $$\begin{array} { c c c } \text { Month } & \text { Production Volume } & \text { Electricity Costs } \\\hline\text { February } & 1,000 & \$ 1,700 \\\text { March } & 2,200 & 4,000 \\\text { April } & 2,000 & 3,200 \\\text { May } & 1,630 & 3,100 \\\text { June } & 1,240 & 2,600 \\\text { July } & 1,340 & 3,020\end{array}$$
Using the high-low method, what is the estimated variable cost per unit of production? (Round your answer to two decimal places.)

• A)1.75
• B)1.92
• C)1.53
• D)1.37

---

Definitions:

Renewable Resource

A natural resource that can replenish itself over time through natural processes or through human intervention.

Oil

A natural fossil fuel used as a primary source of energy for heating, transport, and industrial processes.

Coal

A flammable black or dark brown sedimentary rock primarily utilized for energy production.

Iron Ore

A naturally occurring mineral from which iron (Fe) is extracted to make steel and various other products.