Jackson Company, which uses the high-low method to analyze cost behavior, has determined that machine hours best predict the company's total utilities cost. The company's cost and machine hour usage data for the first six months of the year follow: LOADING...(Click the icon to view the data.) Requirements Using the high-low method, answer the following questions: 1. What is the variable utilities cost per machine hour? 2. What is the fixed cost of utilities each month? 3. If Jackson Company uses 1 comma 230 machine hours in a month, what will its total costs be?

1. What is the variable utilities cost per machine hour?

2. What is the fixed cost of utilities each month?

3. If Jackson Company uses 1 comma 230 machine hours in a month, what will its total costs be?

Explanation:

Some information was missing so I looked it up:

Month                  Total Cost             Machine Hours

January                $3,400                          1,050

February              $3,700                           1,150

March                  $3,500                           1,000

April                     $3,780                           1,200

May                     $4,000                           1,350

June                    $4,200                           1,400

variable costs using the high low method = ($4,200 - $3,400) / (1,400 - 1,050) = $800 / 350 = $2.2857 = $2.29 per machine hour

fixed costs = $4,200 - (1,400 x $2.29) = $994

total costs for 1,230 hours = $994 + (1,230 x $2.29) = $3,810.70

answer; microeconomics;

answer; purpose nondisclosure;