Maurice Tutor

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Algebra,Applied Sciences,Biology,Calculus,Chemistry,Economics,English,Essay writing,Geography,Geology,Health & Medical,Physics,Science Hide all
Teaching Since: May 2017
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Education

  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 10 Sep 2017 My Price 11.00

Luisa Crimini

Exercise  14-28  HIGH-LOW METHOD

Luisa Crimini has been operating a beauty shop in a college town for the past 10 years. Recently, Luisa rented space next to her shop and opened a tanning salon. She antici- pated that the costs for the tanning service would primarily be fixed but found that tan- ning salon costs increased with the number of appointments. Costs for this service over the past eight months are as follows:

 

 

 

Month

Tanning Appointments

Total Cost ($)

January

700

1,758

February

2,000

2,140

March

3,100

2,790

April

2,500

2,400

May

1,500

1,800

June

2,300

2,275

July

2,150

2,200

August

3,000

2,640

Required:

 

 

 

1.       Which month represents the high point? The low point?

2.       Using the high-low method, compute the variable rate for tanning. Compute the fixed cost per month.

3.       Using your answers to Requirement 2, write the cost formula for tanning services.

4.       Calculate the total predicted cost of tanning services for September for 2,500 appointments using the formula found in Requirement 3. Of that total cost, how much is the total fixed cost for September? How much is the total predicted variable cost for September?

Answers

Maurice Tutor
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Status NEW Posted 10 Sep 2017 02:09 PM My Price 11.00

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