Gargymal Company would like to estimate the variable and fixed components of its electrical costs and has compiled the following data for the past five months of operations.
Machine |
||
Hours |
Electrical Cost |
|
August |
1,000 |
$1,620 |
September |
900 |
$1,510 |
October |
1,500 |
$1,870 |
November |
2,000 |
$1,950 |
December |
1,300 |
$1,730 |
Using the high-low method of analysis, the estimated fixed cost per month for electricity is closest to which of the following?