Question: Costco has recently started to take the customer orders over the web site. Following is the past data for first six month: Month Customer Web
Costco has recently started to take the customer orders over the web site. Following is the past data for first six month:
| 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:
- Using the high-low method, estimate the variable cost per Web site hit and the monthly fixed costs.
- Determine the cost equation to estimate the customer Web site expenses for Costco Online.
- If Costco expects 9,500 Web site hits for July, what are their anticipated costs for July?
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1 Calculate High and Low Values Highest website cost 9032 March Lowest website cost 8420 May Highest ... View full answer
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