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The administrator of a car dealership wants to know the fixed and variable component of the costs of the repair department. It provides you with
The administrator of a car dealership wants to know the fixed and variable component of the costs of the repair department. It provides you with the following 6-month information:
Repair hours | A total repair cost | |
January | 1000 | $8,000 |
Febrary | 2000 | $11,000 |
March | 1500 | $9,000 |
April | 1200 | $9,000 |
May | 1800 | $10,500 |
June | 2500 | $12,500 |
Each car you repair takes an average of 10 hours. If in the month of July it is expected to have 14 cars in repairs, using the high point - low point method determine for July:
Variable unit cost per hour:_________
Total fixed cost:_________
Total variable cost in July:_________
Variable unit cost per car in January:_________
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