2) Terrell Corporation has the following data relating to itspower usage for the first six months of the current year.
Month | Usage | (Kw)Cost |
Jan. | 500 | $450 |
Feb. | 550 | 455 |
Mar. | 475 | 395 |
Apr. | 425 | 310 |
May | 450 | 380 |
June | 725 | 484 |
Assume usage is within the relevant range of activity.
Required:
a. | Using the high-low method, compute the cost formula. |
| |
b. | Terrell Corporation estimates its power usage for July at 660watts. Compute the total power cost for July. |
