Question
The following are monthly totals taken from the log of a color photocopying machine used by the Kinlo's Printing Company. Cost was based on a
The following are monthly totals taken from the log of a color photocopying machine used by the Kinlo's Printing Company. Cost was based on a flat fee plus a declining cost per copy made after a minimum number of copies had been made each month.
Month | Number of Copies Made |
Total Cost |
January | 35,200 | $10,800 |
February | 30,400 | 9,600 |
March | 32,900 | 10,225 |
April | 40,300 | 12,075 |
May | 38,400 | 11,600 |
June | 48,900 | 14,225 |
Use the charts provided to differentiate the variable and fixed costs in the use of this machine for future planning.
Use the high-low method to
(a) determine the variable cost per copy and
(b) compute the fixed and variable costs for the months of February and June.
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