Using the data provided for Sam’s Kayak, separate the variable and fixed costs using the cost variability formula, then use your results to develop Sam’s cost formula.

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Sam's Kayak Manufacturing Cost at 1,000 Change in Units of Change in Cost, 500 to Cost, 75O to 750 Volume 1,000 Volume or Stepped) (Variable, Foxed, Cost at 500 Units Cost at 750 Resource of Output Units of Output Output Labor $12,500 $18,750 $25,000 Materials $400,000 $600,000 $800,000 Drying racks $2,500 $3,000 $3,000 Machines $50,000 $50,000 $75,000 Building $100,000 $100,000 $100,000 Wrapping materials $5,000 $7,500 $10,000 Shipping clerks $30,000 $30,000 $60,000 Purchasing agents $40,000 $50,000 $50,000