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Laconic Company manufactures ultra sound equipment. Based on past experience, Laconic has found that total annual repair and maintenance cost can be represented by the following formula: total annual repair and maintenance cost = $205,000 + $7.50x, where x = machine hours. Last year, Laconic incurred 145,000 machine hours.
1. What was the total variable repair and maintenance cost incurred by Laconic last year?
2. What was the fixed repair and maintenance cost per machine hour last year? Round your answer to two decimal places
3. What was the variable repair and maintenance cost per machine hour last year? Round your answer to two decimal places.
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