Account analysis, high-low. Luwak Coffees wants to find an equation to estimate mont...

Account analysis, high-low. Luwak Coffees wants to find an equation to estimate monthly utility costs. Luwak has been in business for one year and has collected the following cost data for utilities:

1. Which of the preceding costs is variable? Fixed? Mixed? Explain.

2. Using the high-low method, determine the cost function for each cost.

3. Combine the preceding information to get a monthly utility cost function for Java Joe’s.

4. Next month, Luwak expects to use 4,400 kilowatt hours of electricity, make 3,000 minutes of telephone calls, and use 64,000 gallons of water. Estimate total cost of utilities for the month.