Tan-O-Rama is a local tanning salon. The following information reflects its number of appointments and total...

 

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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 Appointments Number of Total Cost January 500 $ 6,800 February 300 5,000 March 275 5,450 April 475 6,050 200 250 5,600 5,000 May June Required: Using the high-low method, calculate the total fixed cost per month and the variable cost per tanning appointment. Note: 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 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 Appointments Number of Total Cost January 500 $ 6,800 February 300 5,000 March 275 5,450 April 475 6,050 200 250 5,600 5,000 May June Required: Using the high-low method, calculate the total fixed cost per month and the variable cost per tanning appointment. Note: 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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To calculate the variable cost per tanning appointment and the total fixed cost per month using the ... View the full answer