Question: Use the High-Low method and the information below to answer the following questions.

  1. Use the High-Low method and the information below to answer the following questions.
  2.                          Room cost        Rooms Sold
  3. Busiest                 4080                  2800
  4. Slowest                3100                   1400

  6. i. What is the average variable cost per room?
  7. ii. What is the total variable cost for the busiest and the slowest month?
  8. iii. What is the total fixed cost for the busiest and the slowest month?

Step by Step Solution

★★★★★

3.28 Rating (151 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

To calculate the average variable cost per room we will use the HighLow method The HighLow method in... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...

Q:

Use the high low method to determine: the variable cost per unit, total fixed costs, and the total cost equation. Willis Inc. provided information for costs of its delivery fleet: Total Cost $95,000...

Q:

Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...

Q:

Two franchising experts recently debated the issue of whether new college graduates should consider franchising as a pathway to entrepreneurship. Jeff Elgin said recent college graduates are not...

Q:

Each of the following asset acquisitions requires a year-end adjusting entry. 1. Paid $80,000 cash on January 1 to purchase a hamburger franchise that had an estimated expected useful life of 10...

Q:

20.4a Who controls monetary policy? Who controls fiscal policy?

Q:

Where do you see the organization in 5/10 years?

Q:

Garfun, Inc., owns all of the stock of Simon, Inc. For 2014, Garfun reports income (exclusive of any investment income) of $480,000. Garfun has 80,000 shares of common stock outstanding. It also has...

Q:

Make an algorithm that computes the k-th smallest element of an n-element sequence of distinct integers in O(n + klgn) time. The sequence should be intact after the retrieval is done. Whether using a...

Q:

George Pharmacy is a pharmaceutical salesman who has been very successful at his job in the last few years. Unfortunately, his family life has not been very happy. Three years ago, his only child,...

Q:

first four parts done, need rest please. Pitino acquired 90 percent of Brey's outstanding shares on January 1, 2016, in exchange for $405,000 in cash. The subsidiarys stockholders' equity accounts...

Q:

A scientific study on lift strength gives the following data table Lift strength Tons 46 47 51 55 56 Time to move load seconds 159 166 123 128 117 Using technology it was determined that the total...

Q:

Which of the following jobs has the greatest risk of death? a. Firefighter b. Compliance officer c. Event coordinator d. Taxi driver e. Airline pilot

Q:

Katsu perceives that Gloria only pays attention to the wealthiest customers who she expects to leave large tips. Katsu reminds Gloria that they are supposed to rotate based on when customers enter...

Q:

The use of primary elections completely eliminates the influence of political bosses or political machines in Texas. Question 24 options: True False

Q:

Gibson Valves produces cast bronze valves on an assembly line, currently producing 1600 valves per shift. If the production is increased to 2000 valves per shift, labor productivity will increase by

Q:

Which of the following statements is true? a The SEC develops accounting standards, while the FASB requires companies to adhere to them. b The SEC develops accounting standards and also requires...

Q:

(a) Given a mean free path = 0.4 nm and a mean speed vav = 1.17 105 m/s for the current flow in copper at a temperature of 300 K, calculate the classical value for the resistivity of copper. (b)...

Q:

John Fuji (age 37) moved from California to Washington in December 2011. He lives at 468 Cameo Street, Yakima, WA 98901. John's Social Security number is 571-78-5974 and he is single. His earnings...

Q:

Professor Patricia (Patty) Pate is retired from the PalmSprings Culinary Arts Academy (PSCAA). She is a single taxpayer and is 68 years old. Patty lives at 98 Colander Street, Henderson, NV 89052....

Q:

Ray and Maria Gomez have been married 3 years. They live at 1610 Quince Ave., McAllen, TX 78701. Ray works for Palm Oil Corporation and Maria works for the City of McAllen. Maria's Social Security...

Q:

Have you ever been in a small group with too much cohesiveness? If so, did Groupthink develop? If so, how did you know? If not, what prevented Groupthink from occurring?

Q:

One of the assumptions of this theory is that power structures are present in groups and guide the decision-making process by providing us with information on how to best accomplish our goals....

Q:

Give an example of how boundary turbulence affects communication privacy management processes.