Use the high$-$low method to determine the variable and fixed cost components of Rapid Lube's operating costs. Use this information to project the monthly operating costs for a month in which the company performs $3,900$ oil changes.

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Use the high$-$low method to determine the variable and fixed costs components of Rapid Lube's operating cost equation.

First identify the formula and calculate the variable cost component $($slope$).($Round your answer to the nearest cent.$)$

$\backslash$table$[[$Change in costs,$+,$Change in volume,$=,$Variable cost per unit,$],[$$$,5,000,+,1,000,=,5\mathrm{.}00]]$

Next identify the formula and compute the fixed cost component $($the vertical intercept$)$ using the costs for the highest level of activity. $($Round your answers to the nearest whole number.$)$

$=,$ Total fixed costs

Data table

$\backslash$table$[[$Month$,$Number of Oil Changes,Operating,Expenses$],[$January $....,3,700,$$$,38,000],[$February $....,3,100,$$$,34,000],[$March $......,3,300,$$$,35,000],[$April $.......,3,200,$$$,34,500],[$May $........,4,100,$$$,39,000],[$June $.......,3,400,$$$,35,500]]$

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