The following are monthly totals taken from the log of laser printer used by the
ID: 2503198 • Letter: T
Question
The following are monthly totals taken from the log of laser printer used by the Hardcopy Printing International. 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
July
38,720
$11,880
August
33,440
10,560
September
36,190
11,248
October
44,330
13,283
November
42,240
12,760
December
53,790
15,648
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 (round your answers to two decimal places) and (b) compute the fixed and variable costs for the months of August and December (round your answers to nearest whole number)
Month
Number of Copies Made
Total Cost
July
38,720
$11,880
August
33,440
10,560
September
36,190
11,248
October
44,330
13,283
November
42,240
12,760
December
53,790
15,648
Explanation / Answer
Variable Cost/Copy = 0.25001
Fixed Cost = 2199.45
For August
Fixed Cost = 2199.45
Variable Cost = 8360.33
For December
Fixed Cost = 2199.45
Variable Cost = 13448.03
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