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E-M:4-32 Determining mixed coststhe high-low method (Learning Objective 1) The manager of Trusty Car Inspection reviewed the monthly operating costs for the past year. The
E-M:4-32 Determining mixed coststhe high-low method (Learning Objective 1) The manager of Trusty Car Inspection reviewed the monthly operating costs for the past year. The costs ranged from $4,300 for 1,300 inspections to $3,900 for 900 inspections. Requirements 1. Use the high-low method to calculate the variable cost per inspection. 2. Calculate the total fixed costs. 3. Write the equation and calculate the operating costs for 1,000 inspections. 4. Draw a graph illustrating the total cost under this plan. Label the axes, and show the costs at 900,1,000, and 1,300 inspections. 3. $4,000
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