Swanson and Associates presently leases a copy machine under an agreement that calls for a fixed fee each month and a charge for each copy made.

Swanson and Associates presently leases a copy machine under an agreement that calls for a fixed fee each month and a charge for each copy made.  Swanson made 7,000 copies and paid a total of $360 in March; in May, the firm paid $280 for 5,000 copies.  The company uses the high-low method to analyze costs.

    1.   Swanson's variable cost per copy is:

            A.   $0.040.

            B.   $0.051.

            C.   $0.053.

            D.   $0.056.

            E.   an amount other than those given above.

Answer: A  

    2.   Swanson's monthly fixed fee is:

            A.   $80.

            B.   $102.

            C.   $106.

            D.   $112.

            E.   an amount other than those given above.

Answer: A

Please show work for both. Thanks!