Illinois Company is attempting to develop a cost function for repair costs. The following past data are available:

	Machine Hours			Repair Costs
		2,400	$6,385
		1,200	3,480
		2,000	5,285
		3,400	8,980

Using the high-low method, what is the variable repair cost per machine hour?

		$2.10
		$2.44
		$3.00
		$2.50

White Company has a sales volume of 7,000 units. White Company's total fixed costs are $42,000 and total variable cost are $28,000. If White sells 9,500 units, the total expected cost would be:

		$63,000
		$80,000
		$78,000
		$76,000