Week 6 Homework
Please complete the below problems and submit your answers in the Week 6 Drop Box. See "Syllabus/Due Dates for Assignments & Exams" for due date information.
1. Jersey Subs, Inc. wants to find an equation to estimate monthly utility costs. Jersey Subs has been in business for one year and has collected the following cost data for utilities:
a. Which of the preceding costs is variable? Fixed? Mixed? Explain.
b. Using the high-low method, determine the cost function for each cost.
c. Combine the preceding information to get a monthly utility cost function for Jersey.
d. Next month, Jersey Subs expects to use 2,200 kilowatt hours of electricity, make 1,500 minutes of telephone calls, and use 32,000 gallons of water. Estimate total cost of utilities for the month.
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