Refer to the information in problem 5-40.

Required:

a. Use Microsoft Excel to prepare a scatter graph for the data presented.

b. Estimate the total fixed cost of operating the company.

c. Estimate the expected cost for a quarter if 25 sessions are offered.

problem 5—40.

Ace Computer Training offers short computer courses. The number of course sessions offered depends on student demand. The following information pertains to 2005:

Required: Using the high-low method, determine the following:

a. The variable cost per session.

b. The total fixed cost of operating the company.

c. The expected cost for a quarter if 25 sessions are offered.

Transcribed Image Text:

First quarter Second quarter Third quarter Fourth quarter Total Number of Sessions 30 Cost $75,000 35 78,000 15 42,000 20 48,000 100 $243,000