Runaround Corporation sells running shoes and during January they ran production machines for 22,000 hours total and incurred $ 10,000 in maintenance costs. During July they ran production machines for 14,000 hours total and incurred $ 7,400 in maintenance costs. Based on this data, what is the variable maintenance cost per machine hour?
variable maintenance cost per machine hour = Change in cost /change in machine hours
= [10000 - 7400] /[22000-14000]
= 2600/ 8000
= $ .325 per machine hour
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