Question: Costco has recently started to take the customer orders over the web site. Following is the past data for the first 6 months: Month Customer

Costco has recently started to take the customer orders over the web site. Following is the past data for the first 6 months:

Month Customer Web site costs Number of Web site hits January $8,960 11,600 February $8,762 11,270 March $9,032 11,720 April $8,942 11,570 May $8,420 10,700 June $8, 492 10,820 Required: 1. Using the high-low method, estimate the variable cost per Web site hit and the monthly fixed costs. 2. Determine the cost equation to estimate the customer Web site expenses for Costco Online. 3. If Costco expects 9,500 Web site hits for July, what are their anticipated costs for July

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