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What is the estimated variable cost per machine hour

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Reference no: EM131819859

Problem

At Long Co. electricity cost starts with a minimum fixed cost, and after that, there is a perfectly variable expense. Using estimated machine hours:

Machine hours       Cost
50,000               $68,000
60,000               $80,000

What is the a) estimated variable cost per machine hour and what is the b) estimated TOTAL fixed cost?

Reference no: EM131819859

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