Mackey Bread Company (Mackey) bakes loaves of bread. The monthly equipment maintenance cost for Mackey is considered to be a mixed cost. The variable portion of the cost is related to the number of loaves baked. The production volume and maintenance costs for the past six months are presented below. Mackey uses the high-low method to separate mixed costs into its fixed and variable portions.

Month Volume of Production (Number of Loaves) Equipment Maintenance Costs July 338,000 $8,159 August 497,000 $10,618 September 268,000 $7,077 October 104,000 $4,542 November 593,000 $12,102 December 290,000 $7,417

Do not enter dollar signs or commas in the input boxes.

a) Calculate the variable rate for the equipment maintenance cost. Round your answer to 5 decimal places.

Variable Cost per Unit: $Answer

b) Calculate the fixed portion of the equipment maintenance cost. Round your answer to the nearest whole number.

Fixed Cost: $Answer

c) Assume that 420,000 loaves is the budgeted production level for December. Using the results of the high-low method in parts a) and b), what is the expected total equipment maintenance cost for December? Round your answer to 2 decimal places.

Expected total equipment maintenance cost for December: $Answer