Question

Exercise 2-9 (Part Level Submission) Crane, Inc., has collected the following information on its cost of electricity: Machine Hours Total Electricity Costs January 500 $230 February 540 $280 March 340 $190 April 430 $200 May 640 $260 June 690 $330 July 300 $160 August 500 $250 September 220 $100 October 730 $320 November 820 $340 December 600 $300 Collapse question part (a) Correct answer. Your answer is correct. Using the high-low method, compute the variable cost of electricity per machine hour. (Round unit cost to 2 decimal places, e.g. 52.75.) Variable cost $Entry field with correct answer 0.4 per machine hour Click if you would like to Show Work for this question: Open Show Work SHOW SOLUTION LINK TO TEXT LINK TO VIDEO Attempts: 1 of 2 used Collapse question part (b) Incorrect answer. Your answer is incorrect. Try again. Compute the total fixed cost of electricity. (Round answer to 2 decimal places, e.g. 52.75.) Fixed cost $Entry field with incorrect answer 0.40 Click if you would like to Show Work for this question: Open Show Work SHOW SOLUTION LINK TO TEXT LINK TO VIDEO Attempts: 2 of 2 used Collapse question part (c) Correct answer. Your answer is correct. Represent the electricity cost function in equation form. (Round answers to 2 decimal places, e.g. 52.75.) Total cost = $Entry field with correct answer 0.4 × MH + $Entry field with correct answer 12 Click if you would like to Show Work for this question: Open Show Work SHOW SOLUTION LINK TO TEXT LINK TO VIDEO Attempts: 2 of 2 used Collapse question part (d) What is the expected electricity cost when 730 machine hours are used? (Round answer to 2 decimal places, e.g. 52.75.) Total cost $

Answer 1

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