Sunland, Inc., has collected the following information on its cost of electricity: Machine Hours Total Electricity Costs January 500 $200 February 540 $290 March 360 $200 April 460 $210 May 650 $260 June 730 $330 July 310 $160 August 500 $270 September 220 $121 October 740 $340 November 840 $400 December 600 $310 Represent the electricity cost function in equation form. (Round answers to 2 decimal places, e.g. 52.75.) Total cost = $enter a dollar amount × MH + $enter a dollar amount
Sunland, Inc., has collected the following information on its cost of electricity: Machine Hours Total Electricity Costs January 500 $200 February 540 $290 March 360 $200 April 460 $210 May 650 $260 June 730 $330 July 310 $160 August 500 $270 September 220 $121 October 740 $340 November 840 $400 December 600 $310 Represent the electricity cost function in equation form. (Round answers to 2 decimal places, e.g. 52.75.) Total cost = $enter a dollar amount × MH + $enter a dollar amount
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 41E
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Question
Sunland, Inc., has collected the following information on its cost of electricity:
| Machine Hours | Total Electricity Costs | ||||
|---|---|---|---|---|---|
|
January
|
500 | $200 | |||
|
February
|
540 | $290 | |||
|
March
|
360 | $200 | |||
|
April
|
460 | $210 | |||
|
May
|
650 | $260 | |||
|
June
|
730 | $330 | |||
|
July
|
310 | $160 | |||
|
August
|
500 | $270 | |||
|
September
|
220 | $121 | |||
|
October
|
740 | $340 | |||
|
November
|
840 | $400 | |||
|
December
|
600 | $310 |
Represent the electricity cost function in equation form. (Round answers to 2 decimal places, e.g. 52.75.)
| Total cost = $enter a dollar amount × MH + $enter a dollar amount |
Transcribed Image Text:Represent the electricity cost function in equation form. (Round answers to 2 decimal places, e.g. 52.75.)
Total cost = $
x MH + $
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Follow-up Question
Identify the high and low points.
|
Machine Hours
|
$
|
|||
|---|---|---|---|---|
|
High point
|
enter the machine hours for high point | $enter the high point in dollars | ||
|
Low point
|
enter the machine hours for low point | $enter the low point in dollars |
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 | $enter the variable cost per machine hour in dollars per machine hour |
Solution
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What is the expected electricity cost when 740 machine hours are used?
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