Total electricity cost is comprised of a basic fixed cost

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Reference no: EM13946309

At long co. the total electricity cost is comprised of a basic fixed cost mad above that there is a variable expense component for the electricity. Using the estimated machines hours in the facility:

Machine hours. Total cost

50,000. $68,000

60,000 $80,000

Show calculations and answer both:

A.) estimated variable cost per machine hour for electricity

B.) estimated total fixed cost for electricity

Reference no: EM13946309

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