Cari German uses gas to heat her home. She has accumulated the following informa
ID: 2478725 • Letter: C
Question
Cari German uses gas to heat her home. She has accumulated the following information regarding her monthly gas bill and monthly heating degree-days. The heating degree-days value for a month is found by first subtracting the average temperature for each day from 65 degrees and then summing these daily amounts together for the month. Month Heating Degree-Days Gas Bill February 1,900 $254 April 600 $101 What will be the increase in Cari's monthly gas bill per heating degree-day using the high-low method? $0.3309 $0.1177 $46.00 $153.00
Explanation / Answer
Answer
Variable cost per unit = $ 254 - $ 101 / 1900 – 600
= $ 153 / 1300
= 0.1177
Answer : The increase in Cari's monthly gas bill per heating degree-day using the high-low method will be 0.1177