So for this question, we're giving the staying cooperation. Um wants to find an equation to estimate some of the monthly operating costs for the operating budget for 2018, and the cost that we got it for 2017 are giving um, throughout the old year with the maintenance caused mentors, hours, the machine hours rather, the ELT insurance, the number of employees the shipping cost and the unit cost. Now the first question wants us to find which of the prison in cost is variable, which are prison costs is fixed, which is mixed on which is, um yeah, which is variable fixed or mixed, and what to explain. So, looking at the table, the cost is fixed. The precision cost eyes fixed would be the lt insurance costs. And this because the health insurance cause do not vary with the number of employees and therefore the remain fixed. So we're going to say the Lt insurance because I fixed because they did not very with the number of employees and it remains fixed now. The percentage cost dives mixed would be maintenance costs because maintenance costs have a fixed component of the supervisor, the maintenance, salary and the staff salary, but it could have. You could also have a variable cost components that very rich in the machine hours. So basically, the the machine staff salaries, which you pay the salaries we should pay. The staff are fixed and they do not change. But at the same time, the maintenance costs also very due to the machine hours that I used. So maintenance costs are mixed. Yeah, and they're mixed because they could be fixed due to maintain US staff salaries. I'm variable, very reduced with the machine I was used. Now moving on. The cost are variable off the shipping cost. Shipping costs are variable cost. On the very directly with the units are ships. So the more unity ship that's the That's what's going to change the shipping cost. So they're all variable, so shipping cost a variable on depends directly on the unit shipped. Now, that's just the first part of the question. Now, the second question SE is using the high, low meta determine the cons function for each cost, so for the cost. If the costs are giving by why and the questions were given by ex, then the cost function well because to because function formula will be given by the following with the slope of question be on the intercept of a as why is it cost a plus B X. So now for the cost, we're gonna let the ice cost B Y h with the cost driver off X h So let the I s cost value B y age with costs driver value off X h and the lowest cause value B Y l Well, it's cost driver value off X L So this lift coefficient b would be given by the formula on that the i luh method the coefficients. This little coefficient to be big was toe y h minus y el divided by, um sorry, X h minus X l. So the intercept, it would be the answer sets a on that island method would be ese cause toe Y h minus. So this is a slope coefficient and this is the intercept. So why h minus beat one supplied by X and I could make this a small want supply X h. So now we're going to calculate the slope question be for health insurance costs giving the ice cost off 8600 the number of employees of 105 and the lowest cost of 8600. So basically the slope coefficient. So for the Lt insurance costs, So the ice cores value is 8600 on number of employees is one or five on the lowest Cost value for health insurance costs is 8600 on the number of employees e 68. So therefore, the slope coefficient B will be close to why h minus y el divided by X H minus X l. And this is the cost to 8 600 minus 8 600 divided by 105 minus 68. On this is $0 divided by 105 168 which is still going to be zero does. So the stop the slope coefficient B is $0. So now moving. Now I'm going to calculate the intercept A for the health insurance cost giving the, um i s called value of 6000 and number of employees off one Jenna five. So the inter set off a would be why age minus B once supplied by I'm sorry. Let's buy buy X h So the inter set a foils Insurance goes to be 8600 multiplied by 00 multiplied by 105 and then easy cause thio $8600. So therefore the construction for health insurance cost is 8000 white quest to 8600. So cost function for health insurance cost Is it close to why is it close to $8600? So now we're going to calculate the slope coefficient B off the maintenance costs, giving the so the maintain ask hosts given the highest cost value off 5000 to 71 and machine I was mhm machine hours or 510 on the lowest cost value is 4004. 52 and the machine hours is one Sweeney. So the slow, proficient M coefficient B It would be why h minus y el divided by X h minus x l. So this is 5000 to 71 Manus 4004 52 divided by 5 10 minus 1 20. So this request 819 divided by 39 c and then be is it close to $2 on 10 cents. And that's this little coefficient. Now, to calculate the intercept A for the maintenance costs with the ice value of 5000 to 71 and imagine our the five thing the Intersect it would be why h minus b multiplied by X age so it would be closed to 5000 to 71 minus 2.10 multiplied by five teen and it it will be close to 4200. So the cost function for maintenance costs is it caused. So why is it caused toe 4200 plus two points, 10 x. So now we're gonna calculate the slope coefficient B for the shipping cost. So for the shipping costs, the ice cause value is 34,000 five 96. Andy, you need shipped. It's 9016 units and the lowest cost value is 20,001. 24 on the units shipped is 5 5009 C. So the stop coefficient B would be because to using the same formula y age man is why l divided by X H minus x l. That will be 5 34,096 minus 1 20,024 divided by 9016 minus 5005. 90 This is 14,004. 72 developed by 4000 and seven. 4000 and 20 Rendah, So the slope coefficient B is equal to $3 on 60 cents. Now I'm going to calculate the intercept for the shipping cost. With the ice cost value, we're giving a dinner ships. So the intercept a would be why h minus be multiplied by multiplied by I'm sorry, x age. So it would because it that's 5 4096 minus 3.60 multiplied by 9016 and the easy cost $0. So the costs function for the shipping costs is equals to why is it close to $3 on 60 since x? So now moving on to the third question Combine the preceding information to get a monthly operating cost function for the stain corporation. So we're gonna let the monthly operating cost function BC So So when the number of employees are given by ex one machine, I was given by ex too. So number of employees I'll give you by X one machine hours. I gave him my ex, too. And then you need those ships given my x three. So that's use the president. Cause functions. Estimate the monthly operating cost function with the monthly operating cost function for health insurance. So that would be C one now the monthly operating cost function for maintenance cost would be seats so adamantly a breathing cost function for shipping costs. With C three. So see one. It will be the monthly operating cause function for health insurance cost on day seats. You will be the monthly operating cost function for for maintenance cost and then 63 will be a monthly operating cost function for shipping costs. So the formula for the monthly operating cost function we see easy cause to C one plus C two plus C three so see one is equals 8600 seat. So is the cost to 4002 100. Closed two points 10 x two and then C three is equals to three points 60 x three So C is going to because to 8600 plus 4200 plus 2.10 x two plus three points, Yeah, three points 60 x three So seize equals to 12,000 $800 plus two points 10 x two plus $3.60 x three So, therefore, this formula would be the monthly oppressing cost function for SC. So this is the formula. So moving onto the final question, Um, so next month, Think expects to use 400 machine hours and, um 40. Sorry, 80 employees and sheep 9000 units now estimated total operating costs for the month. So giving the information we're giving the person cost to the sea, right so that will be the function will be 12,000 from the previous question. 12,800 plus two points 10 x two Because three 0.60 cents x three Now the operating costs to be 12,800 plus 2.10 multiplied by the X two is 400 because it's the machine hours multiplied by 400 then plus 3.60 on extra is the unit ship. So that's it multiplied by 9000, so seize equals to 12,800 plus 8 40 plus. That's 2400 so we can see that the Sesay quote, too. 46,000 on $40. So therefore, the the monthly operating costs for the entire month is 46,000 and 40 cents, and that's the answer.