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ABC Inc. is analyzing its maintenance costs over the past year. The following data is available: January: Maintenance cost was $2,500 for 500 units produced.
ABC Inc. is analyzing its maintenance costs over the past year. The following data is available:
- January: Maintenance cost was $2,500 for 500 units produced.
- February: Maintenance cost was $2,800 for 600 units produced.
- March: Maintenance cost was $3,000 for 700 units produced.
- April: Maintenance cost was $3,200 for 800 units produced.
- May: Maintenance cost was $3,500 for 900 units produced.
- June: Maintenance cost was $3,800 for 1,000 units produced.
Using the high-low method, calculate the fixed and variable components of the maintenance costs and formulate the cost function.
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