Barkoff Enterprises, Which Uses the High-Low Method to Analyze Cost

Multiple Choice

Barkoff Enterprises, which uses the high-low method to analyze cost behavior, has determined that machine hours best explain the company's utilities cost.The company's relevant range of activity varies from a low of 600 machine hours to a high of 1,100 machine hours, with the following data being available for the first six months of the year: The variable utilities cost per machine hour for Barkoff is:

A) $0.18.
B) $4.50.
C) $5.00.
D) $5.50.
E) None of the answers is correct.