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Usonic, Inc., has collected the following information on its cost of electricity:
Machine Hours |
Total Electricity Costs |
||||
January |
625 |
$280 |
|||
February |
700 |
$290 |
|||
March |
500 |
$265 |
|||
April |
425 |
$200 |
|||
May |
450 |
$248 |
|||
June |
300 |
$170 |
|||
July |
375 |
$180 |
|||
August |
550 |
$240 |
|||
September |
575 |
$260 |
|||
October |
280 |
$150 |
|||
November |
430 |
$215 |
|||
December |
200 |
$100 |
Assuming the line intersects the y-axis at $50 and using the September activity levels calculate the equation of the line that would be drawn for a scattergraph. (Round variable cost to 2 decimal places, e.g. 15.25 and fixed cost to 0 decimal places, e.g 15.)
y=__________$____________x MH + $______________
What is the expected electricity cost when 425 machine hours are used? (Round answer to 2 decimal places, e.g. 125.25.)
_________________
QUESTION 2
Henley Horticulture provides and maintains live plants in office buildings. The company’s 914 customers are charged $38 per month for this service, which includes weekly watering visits. The variable cost to service a customer’s location is $17 per month. The company incurs $2,468 each month to maintain its fleet of four service vans and $3,284 each month in salaries. Henley pays a bookkeeping service $2 per customer each month to handle all invoicing and accounting functions.
FILL THE REST OF INCOME STATEMENT OUT
What is the expected monthly operating income if 206 customers are added?
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