Sandy, the owner of Sunshine Car Wash has found that her income changes depending on the number of cars she washes per month. Sandy wants to predict what her costs are going to be in the future, and has asked you to assist her with some calculations. She has given you the following information for the previous three months:

September

October

November

Number of cars washed

1 500

1 900

2 000

Income for the month

R61 000

R63 500

R76 000

Required:

3.1 Use the high-low method to calculate the variable cost per unit.(3)

3.2 Use the high-low method to calculate the fixed cost per month.(2)

433 Use the answers from questions 2.22.1 and 2.22.2 to predict the total cost for December if Sandy washes 2200 cars