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The manager of Handy Car Inspection reviewed the monthly operating costs for the past year. The costs ranged from $4,400 for 1,400 inspections to $4,200
The manager of Handy Car Inspection reviewed the monthly operating costs for the past year. The costs ranged from $4,400 for 1,400 inspections to $4,200 for 1,000 inspections. Read the requirements. 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 + Requirement 2. Calculate the total fixed costs. Select the formula and enter the amounts to calculate the total fixed costs. (Use the highest volume and its mixed cost to calculate the total fixed cost.) Total fixed cost Requirement 3. Write the equation and calculate the operating costs for 1,200 inspections. Select the formula and enter the amounts to calculate the operating costs for 1,200 inspections. (Enter all amounts to the nearest cent.) ( ) + Total mixed cost Requirement 4. Draw a graph illustrating your total cost under this plan. Show the costs at 1,000,1,200, and 1,400 inspections. Plot the points for the costs at 1,000, 1,200, and 1,400 inspections, then plot the line for the total costs. (Enlarge the graph and use the point tool and line tool buttons displayed below to draw the graph.) Q 4900- 4700 4500- 4300 4100 3900- 3700 3500- 3300- 3100 2900 2700 2500- 2300- 2100 1900- 1700- 1500- TI 0 200 400 600 8001,000,200,400,600 Click to Inspections enlarge graph
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