Differentiate variable and fixed costs in use of machine

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Reference no: EM13257500

The following are monthly totals taken from the log of a colorphotocopying machine used by the Skywalker Company. Cost wasbased on a flat fee plus a cost per copy made after a minimumnumber of copies had been made each month.

Month # ofcopies 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

Part a

To differentiate the variable and fixed costs in the use of thismachine for future planning, use the high-low method to determinethe variable cost per copy and compute the flat fee.

Part b

Calculate the total cost for using the photocopying machine if44,000 copies are made.

Reference no: EM13257500

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