Question: Refer to the Tan-O-Rama data in M5-7. Using the high-low method, calculate the total fixed cost per month and the variable cost per tanning appointment.

Refer to the Tan-O-Rama data in M5-7. Using the high-low method, calculate the total fixed cost per month and the variable cost per tanning appointment. How does the estimate of fixed cost compare to what you estimated inM5-7?

Number of Appointments Month Total Cost January February March April May June 250 300 500 225 150 175 $5,000 6,000 6,200 5,300 5,450 5,230

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