Monthly sales in units 5,000 8,000 10,000 Cost of food sold $ 10,000 $ 16,000 $ 20,000 Wages and fringe benefits 4,250 4,400 4,500 Fees paid delivery help 1,250 2,000 2,500 Rent on building 1,200 1,200 1,200 Depreciation on equipment 600 600 600 Utilities 500 560 600 Supplies (soap, floor wax, etc.) 150 180 200 Administrative costs 1,300 1,300 1,300 Total $ 19,250 $ 26,240 $ 30,900 (a) Identify each cost as being variable, fixed, or mixed. Cost of food sold Variable Wages and fringe benefits Mixed Fees paid delivery help Variable Rent on building Fixed Depreciation on equipment Fixed Utilities Mixed Supplies (soap, floor wax, etc.) Mixed Administrative costs Fixed (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 $ Ov $ 3 x X Wages and fringe benefits 4,000 0.07 x X Fees paid delivery help OV 0.26 x X Rent on building 1,300 x O VX Depreciation on equipment 400 x Utilities 600 x 0.03 x X Supplies (soap, floor wax, etc.) 100 0.01 V X Administrative costs 1,500 x O V X Total costs equation $ 7,900 * $ 3.37 x X * where X = Unit sales