Monthly sales in units 5,000 8,000 10,000

Cost of food sold $10,000 $16,000 $20,000

Wages and fringe benefits 4,200 4,320 4,400

Fees paid delivery help 1,200 1,920 2,400

Rent on building 1,300 1,300 1,300

Depreciation on equipment 500 500 500

Utilities 800 920 1,000

Supplies (soap, floor wax, etc.) 200 260 300

Administrative costs 1,600 1,600 1,600

Total $19,800 $26,820 $31,500

(b) Use the high-low method to develop a schedule identifying the amount of each cost that is fixed per month or variable per unit. Total the amounts under each category to develop an equation for total monthly costs.

Round variable cost answers to two decimal places.

	Fixed Costs	Variable Costs
Cost of food sold	Answer	Answer	X
Wages and fringe benefits	Answer	Answer	X
Fees paid delivery help	Answer	Answer	X
Rent on building	Answer	Answer	X
Depreciation on equipment	Answer	Answer	X
Utilities	Answer	Answer	X
Supplies (soap, floor wax, etc.)	Answer	Answer	X
Administrative costs	Answer	Answer	X
Total costs equation	Answer	Answer	X

(c) Predict total costs for a monthly sales volume of 9,100 units. $Answer