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Use the high-low method to determine the variable and fixed cost components of Lube-for-Less's operating costs. Use this information to project the monthly operating costs
Use the high-low method to determine the variable and fixed cost components of Lube-for-Less's operating costs. Use this information to project the monthly operating costs for a month in which the company performs 3,600 oil changes. (Click the icon to view the data.) Use the high-low method to determine the variable and fixed costs components of Lube-for-Less's operating cost equation. First, identify the formula and calculate the variable cost component (slope). (Round your answer to the nearest cent.) X Variable cost per unit Data table 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.) Number of Operating Total fixed costs Month Oil Changes Expenses January . .. .. 3,400 $ 36,800 February 2,700 $ 32, 100 Complete Lube-for-Less's operating cost equation. (Round the variable cost to the nearest cent and the fixed cost to the nearest whole dollar.) March 3,000 33,300 y = s ]x + $ April 2,900 $ 32,900 Use your answer from above to predict total monthly operating costs if Lube-for-Less performs 3,600 oil changes. (Round your answer to the nearest whole dollar.) May 3,500 37,700 The total monthly operating costs if Lube-for-Less performs 3,600 oil changes is $. June . . . . . . . . 3,100 $ 34, 100 Print Done
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