Tanias Legal Services rents a photocopier. The company is charged a fixed annual rental plus a per-copy charge. If the company makes 120 000 copies per year, the overall per-copy cost is estimated to be $0.12. If 90 000 copies are made during a year, it is estimated that the cost per copy is $0.14.

Required

1. Using the high-low method, estimate the variable rate per copy and the fixed annual rental fee.
2. What would be the total cost if 140 000 copies are made during a year?
3. If the variable rate per copy falls by $0.01 each time another 20 000 copies are made over and above 120 000 copies, can Tanias Legal Services approximate the cost of photocopying with a straight line?