Question: need help with questions 2,4, and 5 High-Low Method Sophia operates a full service day spa in a small college town. Recently, Sophia rented space
High-Low Method Sophia operates a full service day spa in a small college town. Recently, Sophia rented space next to her spa and opened a spray tanning salon. 5- anticipated that the costs for the spray tanning service would primarily be fixed, but found that tanning salon costs increased with the number of appointments. Costs for this service over the past 8 months are as follows: Tanning Month Appointments Total Cost January 600 $1,760 February 2,100 $2,170 March 3,200 $2,800 April 2,600 $2,400 May 1,400 $1,800 June 2,200 $2,255 July 2,170 $2,300 August 2,900 $2,620 Required: 1. Which month represents the high point? The low point? High point March -V Low point January In your calculations, round per unit costs to the nearest cent. 2. Using the high-low method, compute the variable rate for tanning. Next, compute the fixed cost per month. Round the variable rate per tanning appointment to the nearest cent and use it in your further calculations. Round the fixed cost per month to the nearest dollar and use it in your further calculations. Variable rate for tanning per tanning appointment Fixed cost per month 3. Using the variable rate and fixed cost, what is the cost formula for tanning services? Total tanning service cost $1520+ ($0.40 x Number of appointments) V 4. Calculate the total predicted cost of tanning services for September for 2,500 appointments using the formula found in Requirement 3. Of that totall cost, how much is the total fixed cost for September? How much is the total predicted variable cost for September? If required, round the final answers to the nearest dollar. Total predicted cost for September Total fixed cost for September Total predicted variable cost for September 5. Calculate the total predicted cost of tanning services for September for 3,950 appointments. If required, round the final answers to the nearest dollar. While the total cost prediction is not much greater than the prediction from Requirement 4, Sophia should be concerned that the number of tanning appointments of 3,950 in this calculation is greater than the highest number of tanning appointments (3,200) contained in the 8 months of data non which the hinh-low method constricted the cost function
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