The manager of Trusty Car Inspection reviewed the monthly operating costs for the past year.

The costs ranged from $4,300 for 1,300 inspections to $3,900 for 900 inspections Read the requirements

Requirement 1.

Calculate the variable cost per inspection Select the formula and enter the amounts to calculate the variable cost per inspection. (Round to the nearest cent.) Change in total cost 400 Change in volume of activity 400 Variable cost per inspection = 1.00

Requirement 2.

Calculate the total fixed costs Select the formula and enter the amounts to calculate the total fixed costs. (Use the highest volume and its mixed cost to calculate the total fixed cost.) Total mixed cost Total variable cost Total fixed cost 4,300 1,300 3,000

Requirement 3.

Write the equation and calculate the operating costs for 1,000 inspections Select the formula and enter the amounts to calculate the operating costs for 1,000 inspections. (Enter all amounts to the nearest cent.) ( Variable cost per inspection xNumber of inspections+ Total fixed cost - Total mixed cost 1.00 1,000 3,000 4,000

Requirement 4.

Draw a graph illustrating your total cost under this plan. Show the costs at 900, 1.000, and 1.300 inspections. Plot the points for the costs at 900, 1.000, and 1.300 inspections, then plot the line for the total costs. (Enlarge the graph and use the point tool and line tool buttons displayed below to draw the graph.)

4900- 4700 4500 4300 4100 3900 3700- e 3500 3300 3100 2900 2700- 2500 Dollars 2300 2100- 1900 1700- 1500 0 200 400 600 8001,000,200,400,600 Inspections