Given the Following Cost and Activity Observations for Leno Enterprises

question 63

Multiple Choice

Given the following cost and activity observations for Leno Enterprises' utilities,use the high-low method to calculate Leno's variable utilities cost per machine hour. $$\begin{array} { | l r r | } \hline & \text { Cost } & \text { Machine Hours } \\\text { September } & 4,100 & 22,000 \\\text { October } & 3,700 & 18,000 \\\text { November } & 3,900 & 19,000 \\\text { December } & 4,500 & 28,000 \\\hline\end{array}$$

• A) $0.08
• B) $4.86
• C) $0.25
• D) $12.50

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Definitions:

Terms Of Trade

The ratio of an index of a country's export prices to an index of its import prices.

Bushel

A bushel is a unit of volume that is used for measuring agricultural commodities, with the exact weight varying by the type of commodity.

Lbs. Of Tea

This is not a key term in the context of economics or business; it refers to pounds of tea, a unit of measure for weight.

Comparative Advantage

The ability of a country, individual, company, or region to produce a good or service at a lower opportunity cost than its competitors, underlining the benefits of specialized production and trade.