Gargymal Company Would Like to Estimate the Variable and Fixed

question 3

Multiple Choice

Gargymal Company would like to estimate the variable and fixed components of its electrical costs and has compiled the following data for the last five months of operations:
$\begin{array} { | l | r | r | } \hline & \text { Machine Hours } & \text { Electrical Cost } \\\hline \text { August } & 1,000 & \$ 1,620 \\\hline \text { September } & 900 & 1,510 \\\hline \text { October } & 1,500 & 1,870 \\\hline \text { November } & 2,000 & 1,950 \\\hline \text { December } & 1,300 & 1,730 \\\hline\end{array}$


-Using the high-low method,the estimated variable cost per machine hour for electricity is closest to which of the following?

• A) $0.40 per hour.
• B) $0.98 per hour.
• C) $1.68 per hour.
• D) $2.50 per hour.

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Definitions:

Birth Rate

The number of live births per thousand of population per year.

Death Rate

The number of deaths in a particular population, scaled to the size of that population, per unit of time.

Population Regulation

The mechanisms or processes by which populations maintain their size and composition through factors like birth rates, death rates, immigration, and emigration.

Basic Necessities

Fundamental needs required for maintaining life, such as food, water, shelter, and clothing.