The Phone Bill for a Corporation Consists of Both Fixed

question 144

Multiple Choice

The phone bill for a corporation consists of both fixed and variable costs.Refer to the four-month data below and apply the high-low method to answer the question. $$\begin{array} { | l | r | r | } \hline & \text { Minutes } & \text { Total Bill } \\\hline \text { Tanuary } & 460 & \$ 4,000 \\\hline \text { February } & 210 & \$ 2,695 \\\hline \text { March } & 170 & \$ 2,640 \\\hline \text { April } & 300 & \$ 2,835 \\\hline\end{array}$$ If the company uses 390 minutes in May,how much will the total bill be? (Round any intermediate calculations to the nearest cent and your final answer to the nearest dollar. )

• A)$1,842.60
• B)$1,829.10
• C)$3,672
• D)$6,157

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Definitions:

Restatement

The revision and republishing of one or more previously issued financial statements to correct an error.

Cash Fund

A reserve of cash set aside for specific needs or emergencies, ensuring liquidity for unexpected expenses.

Gain on Disposal

The profit realized from the sale of an asset for more than its book value.

Cost of Goods Sold

The total cost associated with making or acquiring any goods sold during a reporting period.