Current Attempt in Progress

John is considering opening a Fast $\text{'}$n Clean Car Service Center. He estimates that the following costs will be incurred during his first

year of operations: Rent $$9,200,$ Depreciation on equipment $$7,000,$ Wages $$16,400,$ Motor oil $$2$ per quart. He estimates that each

oil change will require $5$ quarts of oil. Oil filters will cost $$3\mathrm{.}00$ each. He must also pay The Fast $\text{'}n$ Clean Corporation a franchise fee of

$$1\mathrm{.}10$ per oil change since he will operate the business as a franchise. In addition, utility costs are expected vary with the quantity of oil

changes as follows:

John anticipates that he can provide the oil change service with a filter at $$26\mathrm{.}88$ each.

Using the high$-$low method, determine variable costs per unit and total fixed costs. $($Round variable cost to $2$ decimal places, e$.$g$.$

$52\mathrm{.}75.)$

Variable cost

Fixed cost

per unit

$

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