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Question: The following are monthly totals taken from the log of a color photocopying machine used by the Kinlo's Printing Company. Cost was based on a flat fee plus a declining cost per copy made after a minimum number of copies had been made each month.
Month
Number of Copies Made
Total Cost
January
35,200
$10,800
February
30,400
9,600
March
32,900
10,225
April
40,300
12,075
May
38,400
11,600
June
48,900
14,225
Use the charts provided to differentiate the variable and fixed costs in the use of this machine for future planning.
Use the high-low method to
(a) determine the variable cost per copy and
(b) compute the fixed and variable costs for the months of February and June.
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