Georgetown Company's weekly store operating costs for a 10-week period totaled $320,000 for the high, and $260,000 for the low. Sales volumes for those two weeks were $4,000,000 and $3,200,000, respectively. The estimated variable cost per dollar of sales using the high-low method is: A. $0.05 per sales dollar. B. $0.08125 per sales dollar. C. $0.075 per sales dollar. D. $0.1067 per sales dollar.
Georgetown Company's weekly store operating costs for a 10-week period totaled $320,000 for the high, and $260,000 for the low. Sales volumes for those two weeks were $4,000,000 and $3,200,000, respectively. The estimated variable cost per dollar of sales using the high-low method is: A. $0.05 per sales dollar. B. $0.08125 per sales dollar. C. $0.075 per sales dollar. D. $0.1067 per sales dollar.
Chapter18: The Management Of Accounts Receivable And Inventories
Section: Chapter Questions
Problem 1P
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Question
Georgetown Company's weekly store operating costs for a 10-week period totaled $320,000 for the high, and $260,000 for the low. Sales volumes for those two weeks were $4,000,000 and $3,200,000, respectively. The estimated variable cost per dollar of sales using the high-low method is:
| A. |
$0.05 per sales dollar.
|
|
| B. |
$0.08125 per sales dollar.
|
|
| C. |
$0.075 per sales dollar.
|
|
| D. |
$0.1067 per sales dollar.
|
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