Now it's Your Turn! Assignment Exercise $81$: Analyzing Mixed Costs

The Education Coordinator decides that the Community College packs may be unduly influencing the high$-$low computation. She decides to re$-$run the results omitting the Community College volume.

Required

$1.$ Using the monthly utilization information presented below, and omitting the Community College training packs, find the fixed and variable portion of costs through the high$-$low method. Note that the college only acquires packs in three months of the year: January, May, and September. These dates coincide with the start dates of their semesters and summer school.

$2.$ The reason the Education Coordinator needs to know how much of the cost is fixed is because she is supposed to collect the appropriate variable cost from the Community College for their packs. For her purposes, which computation do you believe is better? Why?

Month

Total Number of

Training Packs

Total

Cost

Community College

Number Packs

Community College

Cost

January

$1,000$

$$6,200$

$200$

$$1,240$

February

$200$

$1,820$

March

$250$

$2,350$

April

$400$

$3,440$

May

$700$

$4,900$

$300$

$2,100$

June

$300$

$2,730$

uly

$150$

$1,470$

August

$100$

nbsp; $1,010$

September

$1,100$

$7,150$

$300$

$1,950$

October

$300$

$2,850$

November

$250$

$2,300$

December

$100$

$1,010$