The Phone Bill for a Company Consists of Both Fixed

question 144

Multiple Choice

The phone bill for a company consists of both fixed and variable costs. Refer to the four-month data below and apply the high-low method to answer the question.
- $$\begin{array} { | l | r | r | } \hline & \text { Minutes } & \text { Total Bill } \\\hline \text { January } & 480 & \$ 4000 \\\hline \text { February } & 200 & \$ 2700 \\\hline \text { March } & 170 & \$ 2640 \\\hline \text { April } & 320 & \$ 2855 \\\hline\end{array}$$ What is the fixed portion of the total cost? (Round any intermediate calculations to the nearest cent, and your final answer to the nearest dollar.)

• A) $2107.20
• B) $1360
• C) $1893
• D) $2640

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Definitions:

Garnishment

A court order that monies owed to the judgment debtor (defendant) by third parties be paid into court and applied toward judgment debts; also known as attachment of debt.

Judgment Debtor

The person ordered by a court to pay damages or costs.

Funds

Financial resources, especially those available for a specific purpose or required to cover a specific debt or purchase.

Federal Government

The national government of a federal state, which shares sovereignty with its provinces, states, or other political subdivisions.