The manager of Able Car Inspection reviewed his monthly operating costs for the past year. His costs

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The manager of Able Car Inspection reviewed his monthly operating costs for the past year. His costs ranged from $4,000 for 1,000 inspections to $3,600 for 600 inspections.

Requirements

1. Calculate the variable cost per inspection.

2. Calculate the total fixed costs.

3. Write the equation and calculate the operating costs for 800 inspections.

4. Draw a graph illustrating your total cost under this plan. Label the axes, and show your costs at 600, 800, and 1,000 inspections.

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Financial and Managerial Accounting

ISBN: 978-0132497978

3rd Edition

Authors: Horngren, Harrison, Oliver

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Question Posted: Dec 16, 2011 03:15 AM

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The manager of Able Car Inspection reviewed his monthly operating costs for the past year. His costs

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Req 1 Variable cost per unit 4000 3600 1000 600 inspections 4...View the full answer

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