# Usonic, inc., has collected the following information on its cost of

Usonic, Inc., has collected the following information on its cost of electricity:

 Machine Hours Total Electricity Costs January 625 \$280 February 700 \$290 March 500 \$265 April 425 \$200 May 450 \$248 June 300 \$170 July 375 \$180 August 550 \$240 September 575 \$260 October 280 \$150 November 430 \$215 December 200 \$100

Assuming the line intersects the y-axis at \$50 and using the September activity levels calculate the equation of the line that would be drawn for a scattergraph. (Round variable cost to 2 decimal places, e.g. 15.25 and fixed cost to 0 decimal places, e.g 15.)

y=__________\$____________x MH + \$______________

What is the expected electricity cost when 425 machine hours are used? (Round answer to 2 decimal places, e.g. 125.25.)

_________________

QUESTION 2

Henley Horticulture provides and maintains live plants in office buildings. The company’s 914 customers are charged \$38 per month for this service, which includes weekly watering visits. The variable cost to service a customer’s location is \$17 per month. The company incurs \$2,468 each month to maintain its fleet of four service vans and \$3,284 each month in salaries. Henley pays a bookkeeping service \$2 per customer each month to handle all invoicing and accounting functions.

FILL THE REST OF INCOME STATEMENT OUT

What is the expected monthly operating income if 206 customers are added?