The Following Data Pertains to Activity and the Cost of Electricity

question 66

Multiple Choice

The following data pertains to activity and the cost of electricity for two recent months:
The best estimate of the total monthly fixed electrical cost is:

• A) $300
• B) $1,200
• C) $1,500
• D) $1,050

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Definitions:

Selling Price

The amount of money a buyer pays to purchase a product or service from a seller.

Average Inventory

A metric that estimates the amount of inventory a business has on hand over a certain period, calculated by taking the sum of the beginning and ending inventory levels divided by two.