Stein Corporation wants to find an equation to estimate some of their monthly operating costs for the operating budget for 2019. In particular, they are focusing on 3 cost items: (a) Maintenance costs (b) Health Insurance costs and (c) Shipping costs. The managers believe that the number of machine hours, number of employees and units shipped are the cost drivers for maintenance costs, health insurance costs, and shipping costs respectively. The following cost and other data were gathered for 2019: Maintenance Costs Machine Hours Health Insurance Number of Employees Shipping Costs Month Units Shipped January $4,500 165 $8,600 68 $25,776 7,160 February $4,452 120 $8,600 75 $29,664 8,240 March $4,600 230 $8,600 92 $28,674 7,965 April $4,850 318 $8,600 105 $23,058 6,405 May $5,166 460 $8,600 89 $21,294 5,915 June $4,760 280 $8,600 87 $33,282 9,245 July $4,910 340 $8,600 93 $31,428 8,730 August $4,960 360 $8,600 88 $30,294 8,415 September $5,070 420 $8,600 95 $25,110 6,975 October $5,280 505 $8,600 102 $25,866 7,185 November $5,271 510 $8,600 97 $20,124 5,590 December $4,760 275 $8,600 94 $34,596 9,610 Required: Stein corporation wants to build cost functions of (a) Maintenance costs (b) Health Insurance costs and (c) Shipping costs bBased on the data collected for the year 2019. (3+5+2+2 = 12 points) 1. Which of the preceding costs is variable? Fixed? Mixed? Explain. 2. Using the high-low method, determine the cost function for each cost. 3. Combine the preceding information to get a monthly operating cost function for the Stein Corporation. 4. For January 2020, Stein expects to use 400 machine hours, have 80 employees, and ship 9,000 units. Estimate the total operating cost (defined as the sum of maintenance, health insurance and shipping costs) for the month