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cost Prepare a cost formula activity receiving orders are predicted cost of receiving for for a yell 18.000 anticipated for the in which a year ME 000 Problem 3.45 cost Behavior, High-Low Method, Pricing Decision city. Carlo Ruiz. and Dunn is a large, accounting firm ed in a and wants to giv one of the firm's founders. appreciates the success locat enjoyed services clinic his firm has accounting something back to his community. He believes that an inexpensive wants to provide basic accounting services for small businesses located in the He the barrio. price the services at cost. Carlos decided to operate Since the clinic is brand it has no experience to go on. an ongoing basis. As two months before determining how much charge per hour on amount charged by a temporary the clinic an hourly charge $25. ha f the Fonseca. Ruiz, and for professional services. The accounting services clinic opened on January 1, During January, the clinic had 120 hours of professional service. During February, the activity was 150 hours. Costs for these two levels of activity are follows: 120 Professional 150 Professional Hours Hours Salaries: Senior accountant Office assistant Internet and software subscriptions Consulting by senior partner 2,400 Depreciation (equipment) Supplies Administration 2.000 Rent (offices) 332 Utilities Required: 1. classify each cost as fixed, variable, or mixed, using hours of professional service as the activity drive 2. Use the high-low method to separate the mixed costs into their fixed and variable components. (Note: Round variable rates to two decimal places and fixed amounts to the nearest dollar.) 3. Luz Mondragon, the chief paraprofessional of the clinic, has estimated that the clinic will average 140 professional hours per month. If the clinic is to be operated as a nonprofit orga- nization, how much will it need to charge per professional hour? How much of this charge is variable? How much is fixed? (Note: Round answers to two decimal places.)