The phone bill for a corporation consists of both fixed and variable costs. Refer to the fourmonth data below and apply the highlow method to answer the question. Min. Total Bill
January 460 $4,000
February 240 $2,675
March 180 $2,655
April 310 $5,730
If the company uses 390 minutes in May, how much will the total bill be? (Round any intermediate calculations to the nearest cent and your final answer to the nearest dollar.)
A) $1,842
B) $1,829
C) $3,672
D) $6,157

$3,601

Explanation:

The calculation for the total bill is as follow;

Change in total cost [ $4,000 - $2,655 ] = $1,345

Change in minutes [ 460 - 180 ] = 280

Therefore,

Variable cost per minute = $1,345 ÷ 280

= $4.80 per minutes

Also,

Variable costs for January

= 460 minutes * 4.80 per minutes

= $2,208

Total fixed costs =Total mixed cost - Total variable cost

= $4,000 - $2,208

= $1,792

For 390 minutes used by the company,

Total costs would be

= [390 minutes * $4.80 per minutes] + $1,792

= $1,872 + $1,729

= $3,601

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.