Question: Question 5: (6 points) B1, C1 & C2 Denapasa Manufacturing leases a vacuum cleaning system for a basic monthly fee plus an additional cost per
Question 5: (6 points) B1, C1 & C2 Denapasa Manufacturing leases a vacuum cleaning system for a basic monthly fee plus an additional cost per hour used above a given minimum for each month. Given below is the information for the most recent six-month period on the number of machine hours of use and the total cost under this lease. Month Machine Hours Total Cost 7 6,300 $58,200 8 4,400 49,935 9 4,700 52,390 10 5,200 54,440 11 5,600 56,620 12 5,000 53,800 You are to provide information for planning on the variable and fixed cost elements in this lease. Use the high-low method to: (a) determine the variable cost per machine hour and (b) Express the cost formula to estimate the total costs within the relevant range
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