Cari's Locker Service Ran Its Freezer in January, a Slow

question 61

Essay

Cari's Locker Service ran its freezer in January, a slow month, for 200 hours for a total cost of $60,000.In June, a peak month, the freezer ran for 1,000 hours for a total cost of $92,000.Required:
Using the high-low method determine the average cost of running the machine one hour in a month were the freezer ran for 800 hours?

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Definitions:

Ownership Transfer

The process by which the legal rights of owning an asset or property are transferred from one person or entity to another.

Restrictive Covenant

A clause in a deed or lease that limits what the owner of the property can do with it.

Valid

Legally binding, enforceable, or well-founded; having legal force.

Recorded Deed

A real estate deed that has been officially entered into public records to establish ownership.