Usonic, inc., has collected the following information on its cost of

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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