Silk 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. C. Requirement 1. Which of the preceding costs is variable? Fixed? Mixed? Explain. Cost Cost function Mixed Maintenance Explanation The cost neither remains constant in total nor remains constant per unit. Although the cost driver varies from month to month, the total cost remains constant. The cost per unit remains constant each month. Health insurance Fixed Shipping costs Variable Requirement 2. Using the high-low method, determine the cost function for each cost. Begin by selecting the general formula that represents the linear cost function for each cost. Maintenance y = a + bx Health insurance y = a Shipping costs y = bx Now determine the cost function for each cost. (Enter all values in the same format as the general linear formula. If a box is not used in the equation, leave the box empty; do not enter a zero or select a label.) Cost function Maintenance y = + per machine hour Health insurance y = + per employee per unit shipped Shipping costs y = + Requirements 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 Silk Corporation 4. Next month, Silk expects to use 440 machine hours, have 120 employees, and ship 9,600 units. Estimate the total operating cost for the month. Print Done Data table Maintenance Costs 4,490 4,375 4,665 Machine Hours 164 $ $ Units Shipped 7,060 8,210 7,940 6,440 125 234 GA 4,860 313 462 $ 5,920 Month January February March April May June July August September October November December Health Number of Shipping Insurance Employees Costs $ 8,660 71 $ 19,768 $ 8,660 81 $ 22,988 $ 8,660 97 $ 22,232 $ 8,660 104 $ 18,032 8,660 80 16,576 8,660 86 $ 25,788 $ 8,660 88 $ 24,416 $ 8,660 85 $ 23,604 $ 8,660 91 $ 18,788 $ 8,660 106 20,076 $ 8,660 100 $ 15,484 $ 8,660 101 $ 26,992 5,160 4,735 4,971 4,915 5,066 277 9,210 8,720 348 357 GA 421 $ $ $ 5,233 471 $ 8,430 6,710 7,170 5,530 9,640 5,244 520 4,710 277 Print Done