Let's break down the **correct answers** for parts B and C step by step, and then summarize the overall process. --- ### **Given Data** | Month | Miles Mowed and Cleaned | Labor Costs | |-----------|------------------------|-------------| | April | 240 | $6,800 | | May | 305 | $7,680 | | June | 325 | $8,310 | | July | 275 | $7,200 | | August | 220 | $6,550 | | September | 200 | $5,760 | | October | 75 | $4,960 | --- ### **Part B: High-Low Method** **Step 1: Identify high and low activity months** - **High:** June (325 miles, $8,310) - **Low:** October (75 miles, $4,960) **Step 2: Calculate variable cost per mile** \[ \text{Variable Cost per Mile} = \frac{\text{Change in Cost}}{\text{Change in Miles}} = \frac{8,310 - 4,960}{325 - 75} = \frac{3,350}{250} = \$13.40 \ \text{per mile} \] **Step 3: Calculate fixed cost** Use either high or low month: \[ \text{Total Cost} = \text{Fixed Cost} + (\text{Variable Cost per Mile} \times \text{Miles}) \] Using June: \[ 8,310 = \text{Fixed Cost} + (13.40 \times 325) 8,310 = \text{Fixed Cost} + 4,355 \text{Fixed Cost} = 8,310 - 4,355 = \$3,955 \] **The correct cost-estimating equation:** \[ \boxed{\text{Monthly labor costs} = \$3,955 + \$13.40 \times \text{Miles}} \] --- ### **Part C: Adjust for 5% Wage Increase** - New variable cost per mile = $13.40 × 1.05 = **$14.07** - Fixed cost remains unchanged (wage increases typically affect only variable costs). **Adjusted cost-estimating equation:** \[ \boxed{\text{Monthly labor costs} = \$3,955 + \$14.07 \times \text{Miles}} \] --- ## **Final Summary** - **Part B:** The high-low method gives the equation: **Monthly labor costs = $3,955 + $13.40 × miles.** - **Part C:** With a 5% wage increase, the equation is: **Monthly labor costs = $3,955 + $14.07 × miles.** Let me know if you need the **scatter diagram** or further explanation!

The correct approach and final answers are as follows: --- ### **Step 1: Identify high and low activity months** - **High activity (June):** 325 miles, $8,310 - **Low activity (October):** 75 miles, $4,960 --- ### **Step 2: Calculate the variable cost per mile (using high-low method)** \[ \text{Variable cost per mile} = \frac{\text{Cost at high} - \text{Cost at low}}{\text{Miles at high} - \text{Miles at low}} = \frac{8,310 - 4,960}{325 - 75} = \frac{3,350}{250} = \boxed{\$13.40} \] ### **Step 3: Calculate fixed costs** Using the high activity month (June): \[ \text{Total cost} = \text{Fixed cost} + (\text{Variable cost per mile} \times \text{Miles at high}) \] \[ 8,310 = \text{Fixed cost} + (13.40 \times 325) \Rightarrow 8,310 = \text{Fixed cost} + 4,355 \] \[ \text{Fixed cost} = 8,310 - 4,355 = \boxed{\$3,955} \] --- ### **Final Cost-Estimating Equation (Part B):** \[ \boxed{\text{Monthly labor costs} = \$3,955 + \$13.40 \times \text{Miles}} \] --- ### **Part C: Adjustment for a 5% wage increase** - The variable cost per mile increases by 5%: \[ \$13.40 \times 1.05 = \$14.07 \] - Fixed costs typically remain unchanged unless specified. ### **Adjusted Cost-Estimating Equation:** \[ \boxed{\text{Monthly labor costs} = \$3,955 + \$14.07 \times \text{Miles}} \] --- ### **Summary:** - **Correct high-low cost equation:** **$3,955 + $13.40 per mile** - **After 5% wage increase:** **$3,955 + $14.07 per mile** --- **Note:** The incorrect options for B and C likely involved wrong variable costs or fixed costs. The above approach correctly applies the high-low method and adjusts for wage increases. --- Let me know if you'd like a scatter diagram or further clarification!