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onth Number of Appointments Total Cost January 325 $ 5,900 February 375 6,200 March 300 5,650 April 350 5,450 May 275 5,550 June 450 6,250 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 u

onth Number of Appointments Total Cost January 325 $ 5,900 February 375 6,200 March 300 5,650 April 350 5,450 May 275 5,550 June 450 6,250 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 u

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter3: Cost Behavior And Cost Forecasting
Section: Chapter Questions
Problem 44E: High-Low Method Refer to the information for Luisa Crimini above. Required: 1. Which month...
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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 Number of Appointments Total Cost
January 325 $ 5,900
February 375 6,200
March 300 5,650
April 350 5,450
May 275 5,550
June 450 6,250

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.

 

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