year. $4,800 for 1,200 inspections to $3,800 for 700 inspections. Read the requirements. ..... Requirement 1. Use the high-low method to calculate the variable cost per inspection. Select the formula and enter the amounts to calculate the variable cost per inspection. (Round to the nearest cent.) Requirements .......... 1. Use the high-low method to calculate the variable cost per inspection. 2. Calculate the total fixed costs. 3. Write the equation and calculate the operating costs for 800 inspections.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The manager of Quick Car Inspection reviewed the monthly operating costs for the past year. The costs ranged from
$4,800 for 1,200 inspections to $3,800 for 700 inspections.
Read the requirements.
Requirement 1. Use the high-low method to calculate the variable cost per inspection.
Select the formula and enter the amounts to calculate the variable cost per inspection. (Round to the nearest cent.)
Requirements
1. Use the high-low method to 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 your total cost under this plan. Show the costs at
700, 800, and 1,200 inspections.
(Use the high-low method for all calculations.)
Transcribed Image Text:The manager of Quick Car Inspection reviewed the monthly operating costs for the past year. The costs ranged from $4,800 for 1,200 inspections to $3,800 for 700 inspections. Read the requirements. Requirement 1. Use the high-low method to calculate the variable cost per inspection. Select the formula and enter the amounts to calculate the variable cost per inspection. (Round to the nearest cent.) Requirements 1. Use the high-low method to 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 your total cost under this plan. Show the costs at 700, 800, and 1,200 inspections. (Use the high-low method for all calculations.)
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