To differentiate the variable and fixed costs in the use of


The following are monthly totals taken from the log of a colorphotocopying machine used by the Skywalker Company. Cost wasbased on a flat fee plus a cost per copy made after a minimumnumber of copies had been made each month.

Month                         # ofcopies                  Total cost

January                            35,200                        $10,800

February                     30,400                            9,600

March                         32,900                         10,225

April                            40,300                         12,075

May                            38,400                         11,600

June                            48,900                         14,225

Part a

To differentiate the variable and fixed costs in the use of thismachine for future planning, use the high-low method to determinethe variable cost per copy and compute the flat fee.

Part b

Calculate the total cost for using the photocopying machine if44,000 copies are made.

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Accounting Basics: To differentiate the variable and fixed costs in the use of
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