Account analysis, high-low. Stein Corporation wants to find an equation to estimate some of their monthly operating costs for the operating budget for 2018. The following cost and other data were gathered for 2017:

1. Which of the preceding costs is variable? Fixed? Mixed? Explain.

2. Using the high-low method, determine the cost function for each cost.

3. Combine the preceding information to get a monthly operating cost function for the Stein Corporation.

4. Next month, Stein Expects to use 400 machine hours, have 80 employees, and ship 9,000 units. Estimate the total operating cost for the month.

Month January February March April May June July August September October November December Maintenance Machine Costs Hours $4,500 $4,452 $4,600 $4,850 $5,166 $4,760 $4,910 $4,960 $5,070 $5,250 $5,271 $4,760 165 120 230 318 460 280 340 360 420 495 510 275 Health Insurance $8,600 $8,600 $8,600 $8,600 $8,600 $8,600 $8,600 $8,600 $8,600 $8,600 $8,600 $8,600 Number of Employees 68 75 92 105 89 87 93 88 95 102 97 94 Shipping Costs $25,776 $29,664 $28,674 $23,058 $21,294 $33,282 $31,428 $30,294 $25,110 $25,866 $20,124 $34,596 Units Shipped 7,160 8,240 7,965 6,405 5,915 9,245 8,730 8,415 6,975 7,185 5,590 9,610