Question: M58 Estimating Cost Behavior Using High-Low Method [LO 53] Sherri's Tan-O-Rama is a local tanning salon. The following information reflects its number of appointments and

 M58 Estimating Cost Behavior Using High-Low Method [LO 53] Sherri's Tan-O-Rama

M58 Estimating Cost Behavior Using High-Low Method [LO 53] Sherri's Tan-O-Rama is a local tanning salon. The following information reflects its number of appointments and total costs for the first half of the year: Month anuary February March April May June Number of Appointments 425 400 500 200 150 450 Total Cost 6,100 5,700 6,650 5,300 5,250 5,900 Using the high-low method, calculate the total fixed cost per month and the variable cost per tanning appointment. (Round your "Variable Cost per Unit" answer to 2 decimal places and "Fixed Cost" answer to the nearest dollar amount.) Variable Cost per Unit $ 3.73 Fixed Cost $ 3,850

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!