The manager of

Able Car

Inspection reviewed the monthly operating costs for the past year. The costs ranged from

$4,800

for

1,200

inspections to

$3,800

for

700

inspections. Read the requirements

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Requirement 1. Use the high-low method to calculate the variable cost per inspection.

Select the formula and enter the amounts to calculate the variable cost per inspection. (Round to the nearest cent.)

			=	Variable cost per inspection
			=

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Requirements

1.	Use the high-low method to calculate the variable cost per inspection.
2.	Calculate the total fixed costs.
3.	Write the equation and calculate the operating costs for 900 inspections.
4.	Draw a graph illustrating your total cost under this plan. Show the costs at 700, 900, and 1,200 inspections.

(Use the high-low method for all calculations.)

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