Pelicans Ice is a snow cone stand near the local park. To plan for the future, Pelicans

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Pelicans Ice is a snow cone stand near the local park. To plan for the future, Pelicans Ice wants to determine its cost behavior patterns. It has the following information available about its operating costs and the number of snow cones served.

Month Number of snow cones Total operating costs

January 6,400 $5,980

February 7,000 $6,400

March 5,000 $ 5,000

April 6,900 $6,330

May 9,000 $ 7,000

June 7,250 $6,575

Using the high-low method, the fixed costs for a month are

A. $ 12,000

B. $ 2,500

C. $ 4,500

D. $ 2,000

Related Book For answer-question

Introduction to Accounting An Integrated Approach

ISBN: 978-0078136603

6th edition

Authors: Penne Ainsworth, Dan Deines

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Posted Date: Apr 26, 2019 09:24 AM

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Pelicans Ice is a snow cone stand near the local park. To plan for the future, Pelicans

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Units Cost High activity May 9000 7000 Low activit... View the full answer

Introduction to Accounting An Integrated Approach

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