Waverly operates a mobile car detailing service. Waverly travels to a customers home or place of business to wash and detail their car. Since many locations are remote, Waverly's trucks carry water to the location where the car will be washed. Typically, only one car is washed and detailed per location. Waverly serviced 52,500 cars in 2012 Waverly reports the following costs for 2012: 1. Classify each account as variable or fixed for the number of cars washed. Explain. 2. Suppose Waverly washed 75,000 cars in 2012. Use the cost classification you developed in requirement 1 to estimate Waverly's total costs in 2012 Depreciation is computed on a straight-line basis 3. Why is it important to correctly classify costs as variable or fixed? That is, what would happen if Waverly misclassified some of the costs? Explain Requirement 1. Classify each account as variable or fixed for the number of cars washed. Explain Start by calculating total variable costs, and then calculate total fixed costs. Variable costs nData Table Car wash labor Soap, cloth, and supplies Water Fuel and other transportation costs 270,000 35,000 26,350 138,000 74,000 54,000 Total variable costs Salaries Car wash labor Drop-down selections Fuel and other transportation costs Salaries Soap. cloth, and supplies Water