The Phone Bill for an Accounting Firm Consists of Both

question 56

Multiple Choice

The phone bill for an accounting firm consists of both fixed and variable costs. Refer to the 4-month data below and apply the high-low method to answer the question. (Round your intermediate calculations to two decimal places) $$\begin{array} { | l | r | r | } \hline & \text { Minutes } & \text { Total Bill } \\\hline \text { Tanuary } & 460 & \$ 3,000 \\\hline \text { February } & 200 & \$ 2,675 \\\hline \text { March } & 160 & \$ 2,625 \\\hline \text { April } & 300 & \$ 2,800 \\\hline\end{array}$$ What is the fixed portion of the total cost?

• A) $1,850
• B) $2,225
• C) $2,425
• D) $2,625

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Definitions:

Ammonia

A colorless gas with a pungent smell, composed of nitrogen and hydrogen (NH3), used widely as a fertiliser and industrial feedstock.

Propanoic Acid

A short-chain fatty acid with the formula C2H5COOH, known for its unpleasant odor similar to body sweat.

Methyl Propanoate

An ester formed from methanol and propanoic acid, often used as a solvent or in the synthesis of other compounds.

Methods

Systematic approaches or techniques used to accomplish a task, solve problems, or conduct research.