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Marcie Bread Company (Marcie) bakes loaves of bread. The monthly equipment maintenance cost for Marcie is considered to be a mixed cost. The variable portion

Marcie Bread Company (Marcie) bakes loaves of bread. The monthly equipment maintenance cost for Marcie 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. Marcie 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
February 268,000 $5,719
March 263,000 $5,647
April 338,000 $6,727
May 129,000 $3,718
June 586,000 $10,298
July 258,000 $5,575

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 July. Using the results of the high-low method in parts a) and b), what is the expected total equipment maintenance cost for July? Round your answer to 2 decimal places. Expected total equipment maintenance cost for July: $Answer

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