. Using the high-low method, express the company’s maintenance costs as an equation where x represents the gallons of paint produced. Then estimate the fixed and variable costs. Fixed cost $ Variable cost $
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The cost data for Evencoat Paint for the year 2019 is as follows:
| Month | Gallons of Paint Produced |
Equipment Maintenance Expenses |
|||||
| January | 110,000 | $70,700 | |||||
| February | 68,000 | 66,800 | |||||
| March | 71,000 | 67,000 | |||||
| April | 77,000 | 68,100 | |||||
| May | 95,000 | 69,200 | |||||
| June | 101,000 | 70,300 | |||||
| July | 125,000 | 70,400 | |||||
| August | 95,000 | 68,900 | |||||
| September | 95,000 | 69,500 | |||||
| October | 89,000 | 68,600 | |||||
| November | 128,000 | 72,800 | |||||
| December | 122,000 | 71,450 |
A. Using the high-low method, express the company’s maintenance costs as an equation where x represents the gallons of paint produced. Then estimate the fixed and variable costs.
Fixed cost $
Variable cost $
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