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Question - MEG Ltd leases a photocopy machine with terms that include a fixed fee each month plus a charge for each photocopy made. MEG made 5,000 copies and paid a total of $600 in January. In April, they paid $400 for 3,000 copies.
Required -
a) What is the variable cost per copy if MEG uses the high-low method to analyze costs?
b) How much would MEG Ltd pay if it made 7,500 copies? (Hint: Need to solve for Fixed cost).
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