Require:

1(a)Identify each cost as variable, fixed, or mixed by circling the appropriate letter in the box above.

1(b)For the mixed cost(s) identified above, use the high-low method to estimate the variable cost per cone and the total fixed cost.

Tony & Jerry's Ice Cream Shop has the following three costs: ice cream cost, rent cost on the shop, and utilities cost. Jerry & Berry sells its cones for $5.00 each and rewards its staff for their sales efforts. Management has prepared the following estimated cost information for next month: the folowing estimated Variable, Fixed, or Mixed At 2,000 At 5,000 cones cones VF M V F M $20,000 v F M $6000 $6,000 v Wages cost. $14,000 Assume that the activity levels mentioned above are within the relevant range