Teri Hong opened a tanning salon in a new shopping center. She had anticipated that the costs for the tanning service would be primarily fixed, but she found that tanning salon costs increased with the number of visits. Costs for this service over the past nine months are as follows:

Required:
1. Prepare a scattergraph based on the preceding data. Use cost for the vertical axis and number of tanning visits for the horizontal axis. Based on an examination of the scattergraph, does there appear to be a linear relationship between the cost of tanning services and the number of visits?
2. Compute the cost formula for tanning services using the high-low method.
3. Calculate the predicted cost of tanning services for December for 1,900 visits using the formula found in Requirement 2.

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launing Visits 700 1,500 3,100 1,700 2,300 1,800 1,400 1,200 2,000 Total Cost $2,628 4,000 6,564 4,205 5,350 4,000 3,775 2,800 4,765 Month March May April inc July August September October November