Question: S6-9 Use the high-low method (Learning Objective 4) Sun Inn Hotel rents a photocopy machine. The company is charged a fixed annual rental fee and

S6-9 Use the high-low method (Learning Objective 4)

Sun Inn Hotel rents a photocopy machine. The company is charged a fixed annual rental fee and a per-copy charge. If the company makes 8,000 copies per month, the overall per-

copy cost is estimated to be $0.16. If 6,000 copies are made in a month, it is estimated that the cost per copy is $0.19.

1. Using the high-low method, estimate the variable rate per copy and the annual rental fee.

2. If 9,000 copies were made in a month, compute the total cost.

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