Reference no: EM131481514

Assignment

QUESTION 2

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.)

What is the expected electricity cost when 425 machine hours are used?

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?