The Phone Bill for a Company Consists of Both Fixed

question 140

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. $$\begin{array} { | l | r | r | } \hline & \text { Minutes } & \text { Total Bill } \\\hline \text { Tanuary } & 460 & \$ 3,000 \\\hline \text { February } & 200 & \$ 2,675 \\\hline \text { March } & 170 & \$ 2,660 \\\hline \text { April } & 310 & \$ 2,825 \\\hline\end{array}$$ What is the variable cost per minute? (Round your answer to the nearest cent. )

• A)$1.17
• B)$6.52
• C)$0.85
• D)$0.11

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Definitions:

Statute of Frauds

A legal principle requiring certain types of contracts to be in writing to be enforceable.

United States Code

The comprehensive, codified collection of the permanent general and special laws of the United States federal government.

Suretyship Provision

A legal agreement in which a third party agrees to be responsible for the debt or obligation of another party if that party fails to perform or pay.

Main Purpose Doctrine

A legal principle that a promise to pay the debt of another does not need to be in writing if the guarantor's main purpose benefits themselves.