Question: Stein Corporation wants to find an equation
Stein 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: 
Required: 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 Stein Corporation. 4. Next month, Stein expects to use 400 machine hours, have 80 employees, and ship 9,000 units. Estimate the total operating cost for the month.
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Maintenance Costs $4,500 Machine Hours 165 Health Insurance Number of Shipping Costs Units Employees 68 Month $8,600 $8,600 $8,600 $8,600 $8,600 $8,600 $8,600 $8,600 $8,600 $8,600 $8,600 $8,600 $25,776 $29,664 $28,674 $23,058 $21,294 $33,282 $31,428 $30,294 $25,110 $25,866 $20,124 $34,596 Shipped 7,160 8,240 7,965 6,405 5,915 9,245 8,730 8,415 6,975 7,185 5,590 9,610 January February March $4,452 $4,600 $4,850 $5,166 $4,760 $4,910 $4,960 $5,070 $5,250 $5,271 $4,760 120 75 230 92 Аpril May June July August September October 318 105 460 89 280 87 340 93 360 88 420 95 495 102 November 510 97 December 275 94
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