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Requirements 1 1. Which of the preceding costs is variable? Fixed? Mixed? Explain. 2. Using the high-low method, determine the cost function for each cost. 3. Combine the preceding information to get a monthly operating cost function for the Sullivan Corporation Next month, Sullivan expects to use 460 machine hours, have 65 employees, and ship 8,800 units. Estimate the total operating cost for the month. 4. Data Table Shipping Machine Hours 166 125 Maintenance Health Number of Units Shipped Month January February March Costs Insurance Employees 4,560 4,375 4,695 4,860 5,100 4,751 4,951 4,932 5,035 5,239 5,244 4,751 8,670 8,670 8,670 8,670 8,670 8,670 8,670 8,670 8,670 8,670 8,670 8,670 Costs $27,729 7,110 $31,941 8,190 $30,849 7,910 $25,272 6,480 $ 22,893 5,870 $35,997 9,230 $34,086 8,740 $32,955 8,450 $ 26,169 6,710 $ 27,807 7,130 $ 21,762 5,580 $37,440 9,600 76 89 112 May June July August September $ October November $ December$ 315 461 277 350 365 426 85 107 Sullivan Corporation wants to find an equation to estimate some of their monthly operating costs for the operating budget for 2018. The following cost and other data were gathered for 2017; Click the icon to view the cost and other data) Read the requirements. Requirement 1. Which of the preceding costs is variable? Fixed? Mixed? Explain. Cost Cost Maintenance Health insurance Shipping costs function Explanation

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