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Exercise 1. (15 points) Fulton and Sons, Inc. presently leases a copy machine under an agreement that calls for a fixed fee each month and
Exercise 1. (15 points) Fulton and Sons, Inc. presently leases a copy machine under an agreement that calls for a fixed fee each month and a charge for each copy made. Fulton made 10,000 copies and paid a total of $750 in March (company's highest level of activity); in May, the firm paid $680 for 8,800 copies (company's lowest level of activity). The company uses the high-low method to analyze costs. Using the high-low method, find the variable utilities cost per machine hour for Fulton. (5 points) Using the high-low method, find the fixed utilities cost per month for Fulton. (s points) How much would Fulton pay if it made 6,500 copies? (5 points)
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