Assignment
QUESTION 1
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?