The Phone Bill for a CPA Firm Is a Mixed

question 147

Multiple Choice

The phone bill for a CPA firm is a mixed cost. Please refer to the 4-month data below, apply the high-low method, and answer the question. If the company uses 280 minutes in May, how much will the total bill be?

• A)$2,625
• B)$2,750
• C)$2,640
• D)$2,540

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Definitions:

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, reflecting consumers' sensitivity to price changes.

Utility Function

A mathematical representation of a consumer's preference ranking over a set of goods and services.

Substitution Effect

Variations in consumer purchasing patterns as a result of shifting prices among products, which leads to the exchange of one good for another.

Apple Consumption

Refers to the quantity of apples eaten or utilized over a specified period of time.