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Which is the best estimate of the variable component

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Problem 1: A firm manufactures hard disk drives and sells them for $118 each. Each drive requires raw materials costing $23. The number of units sold and total wages bill (including full-time and casual staff) for each of the last 3 months are as follows. Which of the following is the best estimate of the variable component of this semi-fixed wages cost?

Option 1: July

Sales 28
Wage 1621

Option 2: Aug

Sales 30
Wage 1699

Option 3: Sep

Sales 38
Wage 2021

Reference no: EM132899801

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