Question: M5-8 Estimating Cost Behavior Using High-Low Method [LO 5-3] Sherri's Tan-O-Rama is a local tanning salon. The following information reflects its number of appointments and

 M5-8 Estimating Cost Behavior Using High-Low Method [LO 5-3] Sherri's Tan-O-Rama

M5-8 Estimating Cost Behavior Using High-Low Method [LO 5-3] 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 January February March April May June Number of Appointments 500 275 475 450 425 350 Total Cost 6,400 5,050 6,500 6,350 6,100 5,100 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 Fixed Cost

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