The Phone Bill for an Accounting Firm Consists of Both

question 2

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. $$\begin{array} { | l | r | r | } \hline & \text { Minutes } & \text { Total Bill } \\\hline \text { Tanuary } & 460 & \$ 3,000 \\\hline \text { February } & 200 & \$ 2,675 \\\hline \text { March } & 160 & \$ 2,625 \\\hline \text { April } & 300 & \$ 2,800 \\\hline\end{array}$$ What is the variable cost per minute?

• A) $1.25
• B) $0.67
• C) $1.08
• D) $0.58

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Definitions:

Straight Lines

The shortest distance between two points on a plane, characterized by an unchanging direction.

Coefficient of Determination

A statistical measure represented as \(R^2\) that shows the proportion of variance for a dependent variable explained by an independent variable or variables in a regression model.

Simple Linear Model

A statistical model used to describe the relationship between two variables through a linear equation.

Quadratic Model

A mathematical model that involves an equation of the second degree, typically representing a parabolic relationship between variables.