Reference no: EM132562010

Sandy, the owner of Sunshine Car Wash has found that her income changes depending on the number of cars she washes per month. Sandy wants to predict what her costs are going to be in the future, and has asked you to assist her with some calculations.

She has given you the following information for the previous three months:

                                            September                            October                          November

Number of cars washed            1 500                        1 900                           2 000

Income for the month               R61 000                     R63 500                    R76 000

Required:

Question 1: Use the high-low method to calculate the variable cost per unit.

Question 2: Use the high-low method to calculate the fixed cost per month.

Question 3: Predict the total cost for December if Sandy washes 2 200 cars.