Luisa Crimini has been operating a beauty shop in a college town for the past ten years. Re¬

cently, Luisa rented space next to her shop and opened a tanning salon. She had anticipated that the costs for the tanning service would be primarily fixed, but she found that tanning salon costs increased with the number of appointments. Costs for this service over the past eight months are as follows:

Required:
1. Prepare a scattergraph based on the preceding data. Use cost for the vertical axis and number of tanning appointments for the horizontal axis. Based on an examination of the scattergraph, does there appear to be a linear relationship between the cost of tan¬
ning services and the number of appointments?
2. Compute the cost formula for tanning services using the high-low method.
3. Calculate the predicted cost of tanning services for September for 2,500 appointments using the formula found in Requirement 2.

Transcribed Image Text:

Month Tamming 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