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An inspection service received their monthly operating costs for the past year. Costs ranged from $4,000. for 1,000 inspected units to $36,000. for 600 inspections. 1. Calculate the variable cost per inspection. 2. Calculate the total fixed costs. 3. Write the equation and calculate operating costs for 800 inspections. ($3,800) 4. Draw a graph illustrating the total costs under this plan. Label the axes and show the costs at 600, 800, and 1,000 inspections. Solution 1. Variable cost per inspection = Change in cost / Change in inspected units = ($4,000 - $3,600) / (1,000 â€“ 600) = $400 / 400 = $1 (Answer) 2. Total fixed cost = Total cost for 1,000 units â€“ Total variable cost for 1,000 units = $4,000 â€“ ($1 Ã— 1,000) = $4,000 - $1,000 = $3,000 (Answer) 3. Operating cost equation = Fixed cost + Variable cost Operating cost for 800 inspections = Fixed cost + Variable cost = $3,000 + ($1 Ã— 800) = $3,000 + $800 = $3,800 (Answer) .

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Practice topic 9 - answers (1)IrfanKhan679364

- An inspection service received their monthly operating costs for the past year. Costs ranged from $4,000. for 1,000 inspected units to $36,000. for 600 inspections. 1. Calculate the variable cost per inspection. 2. Calculate the total fixed costs. 3. Write the equation and calculate operating costs for 800 inspections. ($3,800) 4. Draw a graph illustrating the total costs under this plan. Label the axes and show the costs at 600, 800, and 1,000 inspections. Solution 1. Variable cost per inspection = Change in cost / Change in inspected units = ($4,000 - $3,600) / (1,000 â€“ 600) = $400 / 400 = $1 (Answer) 2. Total fixed cost = Total cost for 1,000 units â€“ Total variable cost for 1,000 units = $4,000 â€“ ($1 Ã— 1,000) = $4,000 - $1,000 = $3,000 (Answer) 3. Operating cost equation = Fixed cost + Variable cost Operating cost for 800 inspections = Fixed cost + Variable cost = $3,000 + ($1 Ã— 800)
- = $3,000 + $800 = $3,800 (Answer)

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