Acc350 Managerial Accounting: E21-30 The manager of Able Car Inspection reviewed

Acc350 Managerial Accounting
E21-30 Determing mixed costs—the high-low method
The manager of Able Car Inspection reviewed the monthly operating costs for the past year. The costs ranged from $4,000 for 1,000 inspections to $3,600 for 600 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 800 inspections.
4. Draw a graph illustrating the total cost under this plan. Label the axes, and show the costs at 600, 800, and 1,000 inspections.
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