Problem

(L. OBJ. 1) Mixed costs; the high-low method [10-15 min] The manager of Swift Car Inspe...

(L. OBJ. 1) Mixed costs; the high-low method [10-15 min]

The manager of Swift Car Inspection reviewed his monthly operating costs for the past year. His costs ranged from $4,400 for 1,400 inspections to $4,000 for 900 inspections.

Requirements

1. Calculate the variable Cost per inspection.

2. Calculate the total fixed costs.

3. Write the equation and calculate the operating costs for 1,000 inspections.

Step-by-Step Solution

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